EU CPI expecting to improve

<p>The FOMC last night left rates unchanged but came across quite optimistic even with the weak data of late, with the impression that rates will […]</p>

The FOMC last night left rates unchanged but came across quite optimistic even with the weak data of late, with the impression that rates will rise this year. This gave the USD a boost late on, but it’s still is on the back-foot from strong rallies from the EUR and GBP, which continue to push higher.

Today’s data from the Eurozone is the CPI with a few reads to be released, the Flash CPI is expecting to rise from -0.1% to 0.0% and the core CPI is expected to be the same as last at 0.6%. The unemployment rate is also expected to drop to 11.2% from 11.3%. if we get as expected or better we could see this rally push even higher now heading towards 1.15.

Unemployment claims due out from the US and an expected small drop to 290k from 295k may help out with this weak USD we are seeing, but it seems unlikely.

 

 

EUR/USD
Support
 1.0990-1.0860-1.0760 | Resistance 1.1230-1.1320-1.1460

 

 

USD/JPY
Support 
118.60-118.20-117.80 | Resistance 119.40-119.80-120.20

 

 

GBP/USD
Support 1.5340-1.5250-1.5175 | Resistance 1.5520-1.5600-1.5700

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