Euro jumped to 1.1450 after the publication of American statistics
On Wednesday, January 12, by the end of the day, the euro rose in price against the dollar by 0.67%, to 1.1453.
The dollar came under pressure after the publication of the inflation report in the United States for March.
The published US consumer price inflation figures (CPI) exceeded forecasts, reflecting the highest price increases in the country since 1982. The report did not provide support to the dollar, as market participants included in prices the first rate hike in March. The decline in Treasury yields negatively affected the dollar as a defensive asset. Despite the high values of inflation, the market preferred to resort to the strategy of “buy on rumors, sell on facts”.
Consumer price index for December amounted to December 0.5% m / m, 7.0% y / y against the forecast of 0.4% m / m, 7.0% y / y and 0.8% m / m 6.8 % y / y in November. The core consumer price index in December increased by 0.6% m / m, 5.5% y / y against the forecast of 0.5% m / m, 5.4% y / y (in November, the indicators increased by 0.5% m / m and 4.9% y / y).
Scheduled statistics (GMT +2):
At 10:45 am, Catherine Mann, a member of the Monetary Policy Committee of the Bank of England, will deliver a speech.
ECB economic bulletin to be released at 12:00
At 11:30, the Bank of England review on lending conditions will be released
At 15:30 in the US will be released PPI for December
At 15:30 the United States will present a report on the number of initial claims for unemployment benefits.
ECB Member Elderson will deliver a speech at 16:30.
FOMC member Brainard will speak at 5:00 pm.
At the time of this writing, the euro is worth 1.1442. Major currencies are trading slightly higher against the dollar. The price went out of the price range 1.1222-1.1865. The high is fixed at 1.1453. If we take into account yesterday's reaction to the growth of inflation, now the road to the level of 1.1590 is opened for buyers. Many pairs have reached significant price levels. It takes a little respite to keep growing. Here, either start an offensive against the dollar from the opening of the European session, or retreat to the support zone at 1.1415-1.1420.
Summary: on Wednesday, the euro closed higher after the release of US inflation data for December. The decline in Treasury yields negatively affected the dollar as a defensive asset. The euro / dollar pair broke out of the 1.5-month range, reaching 1.1453. The road to the level of 1.1590 has opened for buyers. Continued growth is expected through a pullback to the 1.1415-1.1420 zone.