Euro surged to new heights even threatening to break the psychological barrier of 1.60 as Euro Zone CPI was revised up to 3.6% in March. Furthermore, core inflation rates rose to 2% for the first time in almost 5 years, justifying ECB President's hawkish outlook. The Euro hit all-time highs against the pound also, bolstering speculation the UK currency’s yield advantage over the single currency will diminish.
TECHNICALS FOR THE DAY
EURO is expected to trade in the range of 1.5880-1.5990.With good support seen at 1.5870 and key resistance is seen at the psychological levels of 1.600.Breach above the resistance will test 1.6010.Currency is expected to be on a mixed note for the day as it is trading well above the moving averages. But the overbought stochastic hinting towards the possibility of small downside correction.
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