The Euro was pinned close to a recently struck 3-month trough while the US Dollar steadied close to a 3-1/2 month high. In the Eurozone, inflation data from Italy which failed to meet expectations has put FX traders on edge as they await the imminent release of inflation data from Germany. Economists are predicting that the harmonized index of consumer prices for April will be flat at 1.5% (year-over-year). Italy’s statistics office reported that preliminary figures for April’s consumer inflation was unexpectedly lower across the board, missing all forecasts. That news for the third largest economy in the Eurozone has Euro traders on edge as they await the news on the largest Eurozone economy.
As reported at 11:01 am (BST) in London, the EUR/USD was trading at $1.21, down 0.11% and off the session low of $1.20984, while the high for the session is at $1.21400. The EUR/GBP is trading at 0.8834 Pence, a gain of 0.08%; the pair has ranged from a trough of 0.87965 Pence to a peak of 0.88271 Pence.
A Look Ahead for the Dollar
Later today, markets will focus on the release of personal inflation and consumption data out of the US. Currently, economists are forecasting that core personal consumption expenditures will show a rise to 1.9% in March (year-over-year); that figure excludes seasonally volatile expenditures such as energy and food prices. Later, US pending home sales and the Chicago PMI report will be released with economists predicting some improvement over the last reported numbers. Also ahead is the Federal Reserve’s 2-day policy meeting which begins on May 1st; on Friday, May 4th, private sector jobs figures will be released by the US Department of Labor.