EUR/USD is rebounding from intraday-chart oversold lows. Eurozone inflation data on Wednesday could impact interest-rate expectations and the exchange rate. The recovery could rise a little further but the short-term trend remains bearish. EUR/USD is edging higher on Wednesday, making it back into the 1.0770s and extending the previous day’s rebound from six-week lows.
It is still too early to say whether the move is corrective in nature or a reversal of the dominant short-term downtrend – but probably the former. The release of Harmonized Index of Consumer Prices (HICP) and the Unemployment Rate on Wednesday has done little to impact the pair despite showing a further cooling in price pressures. Headline inflation in the Eurozone dipped to 2.4% YoY in March when economists had anticipated it remaining unchanged at 2.6%, according to data from Eurostat. Core inflation slipped to 2.9% from 3.1% when no-change had also been forecast. Month-on-month inflation in the Eurozone rose by