Euro is recovering from earlier losses today, eking out gains even after the latest German inflation data. Some Forex traders are waiting to analyze comments by Mario Draghi, and others are waiting to see what impact US data will have on the Forex market.
Even though the euro is heading higher, it’s not a day for big moves on the currency market. There’s a lot of uncertainty, with some concerned that the ECB will finally have to take some action to loosen monetary policy at its meeting next week.
The latest German inflation data was a bit disappointing, showing that the eurozone’s largest and strongest economy has slowing growth. The cost of living in Germany rose 1.0 per cent on a 12-month basis for March, which was down from February’s reading of 1.2 per cent. This represents a three-year low in German inflation.
With concerns about Ireland and other countries in the periphery still high, there is speculation that more might need to be done by the ECB. In the United States, data is being released about housing and energy and that should impact the FX market as well.
At 13:42 GMT EUR/USD is up to 1.3760 from the open at 1.3740. EUR/GBP is up to 0.8274 from the open at 0.8271. EUR/JPY is up to 141.3100 from the open at 140.4020.
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