The Euro broke through the $US1.14 mark today on the back of data out of the Eurozone and weaker than expected figures from the US.
CPI figures from Europe hit the market at 0.1 percent, matching analyst’s forecasts while the yearly figure came in at 1 percent, also as predicted, but was higher than the last release of 0.8 percent which gave the European currency a boost.
Data out of America also strengthened the Euro with the initial jobs claims figure coming in at 276,000 against a consensus of 265,000 and may be a prelude for a not so spectacular non-farm payrolls figure tomorrow.
In fact that’s what seemed to be the main driver of the Euro today as traders place their bets on a weak report with a lot of the news being priced into the market.
There are risks for holders of the Euro that if the employment numbers come in above expectations tomorrow we could see a sharp pullback in the currency as speculation swirls on an imminent rate hike from the US Federal Reserve
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