EURUSD on Friday remains strong. The current quote is 1.1070.
What happened that the USD slipped to its 12-month lows? In fact, there was nothing unusual. The macroeconomic statistics published yesterday confirmed a decline in inflation and gave the market a new argument supporting the upcoming end of the tight credit and monetary policy of the US Fed.
The mentioned statistics were the PPI report for March. The figure dropped significantly over the reporting period – to 2.7% y/y from 4.9% in February, or by 0.5% m/m.
The statistics came out much better than expected. If not only the consumer inflation but also the PPI is falling, the Fed will have no trumps for further lifting the interest rate.
Source: Roboforex
