Home > Resource Hub > Daily Market News > USD shows strength overnight as Eurozone inflation continues to increase

USD shows strength overnight as Eurozone inflation continues to increase

USD shows strength overnight as Eurozone inflation continues to increase

Yesterday saw the main pairs continue to operate in relatively narrow ranges with the dollar modestly softer amid comments from Fed officials. This saw the euro and the yen regain some ground against the currency, having been on the defensive recently. Overnight though, the greenback recouped some of its losses.

In terms of data releases, Eurozone industrial production printed in line with the consensus yesterday. Output rose by 0.7% in February, led by an increase in consumer and intermediate goods production. However, the data had little impact on the euro.

As we get underway this morning, EUR/USD is up at the midpoint of $1.08-1.09, EUR/GBP is operating in the lower half of 83-84p and GBP/USD is trading at the halfway mark of $1.30-1.31. Elsewhere, USD/JPY is back nearer to the ¥128 threshold.

Looking ahead to the rest of the day, the main releases of note will be the Eurozone HICP inflation for March. The release is set to confirm inflation jumped to 7.5% from 5.9%. Meanwhile, Eurozone consumer confidence is projected to fall again in April, from already very low levels. Elsewhere, a number of key central bank officials are due to speak, including Fed Chair Powell, ECB President Lagarde and BoE Governor Bailey.

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.