EUR/USD traded in a range for the most part of the current trading session but jumped after the release of the US inflation report. While the CPI data was in line with expectations, analysts argued that it did not provide incentive for the Federal Reserve to hike interest rates with faster pace. And that disappointed those dollar bulls who were betting on more aggressive monetary tightening from the Fed.
CPI rose 0.2% in February, seasonally adjusted, just as analysts had expected. The index was up 0.5% in January. (Event A on the chart.)
Yesterday, a report on treasury budget was released, showing a deficit of $215.2 billion in February after the surplus of $49.2 billion registered in January. (Not shown on the chart.)
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