In the Eurozone, CPI inflation was in line with expectations at 1.5% in March, while Core CPI, which excludes food and energy prices, was also announced at 0.7%. Draghi and his colleagues will not be very pleased with the decline in inflation if we consider that headline inflation is 2% and core inflation is 0.9% in February.
At the first meeting of the year in Draghi, we can say that the upsurge in inflation is not permanent and emphasizes insecurity about inflation. We can say that the negative effect of the incoming data on the euro is limited, but after the hard rise of yesterday, the parity is rested.
If we take into account the weakness of the dollar index, it may continue to recover to 1.0820 by staying above 1.07 territory, but in the coming days, the first critical test in front of the euro will take place on April 23rd, the first round of the French presidential election. Extremist leftist Melenchon is likely to be in the first round with Le Pen in the second round. If this scenario goes back to life, we are likely to see sales pressures on EURUSD. Below are currently 1.0650 and 1.0600 support levels.