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.
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