The price of euro continues to move in the corridor 1,3810-1,3850. Growth of quotations was caused yesterday by anticipation of release of data on consumer price inflation in the euro area. According to the report, in March, inflation dropped to its lowest level since November 2009. Thus, the consumer price index made 0.5% yoy, compared to 0.7% in February. In addition, the core consumer price index in the euro area fell to 0.7% vs. expected 0.8%.
Negative impact on the dynamics of the euro may have the applying of softening measures by the ECB, to deal with low inflation. Another negative factor was the message on decrease in the trade surplus of the euro area to 21.9 billion euro in February, against 25.4 billion euro in January.
Reduction of the quantitative easing program, despite the slow recovery of the U.S. labor market is an additional factor that leads to a long-term negative outlook for the euro price. We expect low activity of traders in connection with the upcoming long weekend.
Wish you the profits!
FXFINPRO Capital Analytical department.