EUR/USD Extends Rally Caused by CPI Miss

EUR/USD extended yesterday’s rally caused by the miss of the inflation data. Today’s data in the United States was a bit mixed, but mostly decent. Yet that did not prevent the currency pair from rising, erasing its losses over the week.

Both import and export prices rose in April. Import prices increased by 0.3%, missing the average forecast of a 0.5% increase. On top of that, the March reading was revised from no change to a drop by 0.2%. Export prices rose 0.6% after increasing 0.3% in the previous month. (Event A on the chart.)

Michigan Sentiment Index was unchanged at 98.8 in April, according to the preliminary data, whereas experts had predicted a small drop to 98.4. (Event B on the chart.)

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