The EUR/USD posted its highest rates in five months, a strong end to cap the first quarter of the year. Gaining more than 4.75 percent during the first three months, this is also Euro’s best quarter against the dollar in almost five years.
The pair is now trading at 1.1381 in a range between 1.1310 and 1.1412. The Euro is trying to break into the 1.14 level as traders wait for the upcoming economic data from the US side.
The US will release data on nonfarm payrolls later today. About 210,000 are expected to be added to the already strong labor market, but should it reveal more than the expected amount, the dollar may recover its losses since Tuesday.
It is also possible for the nonfarm payrolls to not pull the dollars up as
(The unemployment rate should hold steady at 4.9% following a series of increases in labor force participation.)
Fears on Britain’s exit in the EU and a high inflation rate buoyed the Euro against bearish greenbacks.
The Eurostat revealed yesterday that March’s inflation rate dropped by 0.1 percent from a -0.2 percent in February, far from the European Central Bank’s 2 percent target inflation.
Meanwhile, core inflation (which strips off the most volatile industry such as food, and energy) increased to 1.0 percent from last month’s 0.8 percent, the highest in six months. However, the core inflation’s rise is only attributed to businesses’ seasonal price hike for the Easter holiday and not necessarily to the whole month.
Earlier in March, the ECB cut interest rates to the red, and if needed, they will do more in the future, ECB governing council member Francois Villeroy de Galhau said on Thursday.