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Weaker Inflation in the Euro-zone Will Not Stop Rate

The first estimate for the consumer price index in the euro-zone came out weaker than expected: 2.7% on an annual basis. This doesn’t hurt the euro, as it is not sufficient to stop the rate hike next week.

A rise to a pace of 2.8% was expected. These same expectations existed last month, but they didn’t materialize. This didn’t stop Trichet from using “strong vigilance” then, and won’t stop the rate hike now. EUR/USD remains practically unchanged, well above support.

Earlier today, German unemployment change disappointed for a second month in a row. The number of unemployed people dropped at a smaller rate than expected: only 8,000.

Resistance is at 1.4550, followed by 1.4650. Support is at 1.4450, followed by 1.4375.

For more about EUR/USD, see the euro/dollar forecast.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.