Forex: EUR/USD – Trading lower on Eurozone CPI data

on Jun 14, 2013
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The pair started to sink in late American trading yesterday, falling from 1.3378 highs. The quote had descended to 1.3340 in early European trade today.

The Eurozone Consumer Price Index readings were disappointing, despite the positive content. The market is looking for stronger numbers to maintain the single currency’s present strength against the USD.
According to Eurostat at 10.00 BST today, Eurozone inflation was 1.4 percent in May y/y, against 1.2 percent in April and matching expectations.
The Consumer Price Index – Core (excluding energy, food, alcohol and tobacco) climbed to 1.2 percent in May y/y, above April’s one percent reading and also matching forecasts.

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And the May CPI m/m came out at 1.1 percent (-0.1 percent in April).
Since these updates, the pair has continued to fall, touching bottoms at 1.3313, though still trading near three-and-a-half month highs.
Later today, the pair may come under pressure from significant updates in the US economic calendar.
The latest current account data is scheduled for 13:30 BST, followed by the Producer Price Index for May, net total and long-term TIC (Treasury International Capital) flows, and industrial production.
And the June reading of the Reuters/University of Michigan Consumer Sentiment Index is due out at 15:00 BST.

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