EURUSD – Up
EURUSD trading plan:
German inflation eased significantly in March on the back of lower energy prices but still came in above forecast, adding to pressure on the European Central Bank to further tighten its monetary policy. German consumer prices, harmonized to compare with other European Union countries, rose by an annual 7.8% in March, preliminary data from the federal statistics office showed. There are still few if any signs of any disinflationary process outside of energy and commodity prices. Food prices continued to rise rapidly, up 22.3% year-on-year. The decline in the inflation rate was entirely driven by a slowdown in energy prices, which rose only 3.5% compared with March 2022. The significant rise in labour costs should keep the core inflation rate well above the 2% mark and thus prompt the ECB to raise interest rates at least twice more.
Investment idea: buy 1.0870 and take profit 1.0940.
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