Pioneer inflation data from the eurozone was announced. According to Eurostat, CPI increased by 2% in February, while core CPI, which excludes food and energy prices, rose 0.9% in parallel with expectations.
We see that the biggest contributor to the upsurge in headline inflation is giving energy, food, alcohol and tobacco products, mainly due to rising oil prices. At the ECB meeting we do not recommend Draghi to stand out from the rise in inflation and to avoid losing satisfaction. Although the inflation rate remained high for the first and second quarters, he expressed his insecurity about the fact that the increase may not be permanent.
In addition, the Euro Zone unemployment rate remained at its lowest level since May 2009, paralleling expectations at 9.6% in January. Germany was the country with the lowest unemployment rate at 3.8%, while Greece was the country with the highest unemployment rate at 23%.
The impact of incoming data on EURUSD was limited. Due to the rise in the dollar index, the selling pressure on the parity is ongoing and we can see that 1.0520 support has been broken and the downward movement has gained speed. Below that, you may react to declines from 1.0500 and 1.0450. When recovered, we expect 1.0580 and 1.0650 to work as resistance.