Euro zone: Inflation rate back to zero
The inflation rate in the euro zone returned to zero in April. According to preliminary estimates, it rose from -0.1% in March to 0.0%. The main reason was the food price trend. The inflation rate without energy, food, drink and tobacco stuck at 0.6%. Although the inflation rate has climbed significantly since its low in January (-0.6%), the ECB will continue its asset purchase programme on the same scale.
• EURUSD CLIMBED ON THE INFLATION RATE AND US GDP LARGELY BELOW THE FORECAST
• 10 YEARS BUND RATE HAS INCREASED OF 20 BP IN 2 DAYS FROM 0.16% TO 0.36%
TECHNICALLY EURUSD HAS BROKEN A CHANNEL AND COULD GO TO 1.1532 AS TARGET
HOWEVER YOU HAVE MANY RESISTANCE
RES 1.1270
RES 1.1378
RES 1.1450
TARGET 1.1532
SUPPORT
1.1100
1.1050
1.0850
1.0520
1.0460
The inflation rate in the euro zone returned to zero in April. According to preliminary estimates, it rose from -0.1% in March to 0.0%. The main reason was the food price trend. The inflation rate without energy, food, drink and tobacco stuck at 0.6%. Although the inflation rate has climbed significantly since its low in January (-0.6%), the ECB will continue its asset purchase programme on the same scale.
• EURUSD CLIMBED ON THE INFLATION RATE AND US GDP LARGELY BELOW THE FORECAST
• 10 YEARS BUND RATE HAS INCREASED OF 20 BP IN 2 DAYS FROM 0.16% TO 0.36%
TECHNICALLY EURUSD HAS BROKEN A CHANNEL AND COULD GO TO 1.1532 AS TARGET
HOWEVER YOU HAVE MANY RESISTANCE
RES 1.1270
RES 1.1378
RES 1.1450
TARGET 1.1532
SUPPORT
1.1100
1.1050
1.0850
1.0520
1.0460