EUR/USD is approaching the 1.32 line, GBP/USD is the highest in a month, USD/CAD is close to parity and other currencies are also celebrating against the dollar.
The US posted more positive than negative figures today. CB Consumer confidence exceeded expectations by jumping to 68.1 points, significantly better than 61.4 that was expected. On the other hand, the Chicago PMI dropped to contraction territory, 49 points instead of 52.5 expected.
The Employment Cost Index rose by 0.3%, below expectations of 0.5% that was expected. The S&P / Case Shiller HPI showed a rise of 9.3% (year over year) in prices of homes, more than 9.1% that was expected. In Canada, GDP growth was better than expected in February: 0.3% instead of 0.2%, and this explains the descend of USD/CAD towards parity.
Update: EUR/USD is now retreating after reaching 1.3180, exactly at 15:00 GMT, the time of the fix. Expectations for a rate cut in the euro-zone have risen after inflation fell to a level of 1.2%. Also the unemployment rate continued rising, reaching a level of 12.1%. Spain’s unemployment rate stands at 27.2%.
Christopher Vecchio says that a rate cut is good for the euro-zone, thus good for the euro. Follow Christopher on Twitter.
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