The single currency was rising again on Thursday and the EURCHF cross was erasing this week’s losses. It was seen trading around 1.1550 during the London session, some 0.20% stronger on the day.
The main number of today is the euro zone’s CPI release for May, which is expected to rise notably to 1.6% from 1.2% previously (year on year), while the core inflation gauge is projected to accelerate as well to 1.0% from 0.7% previously. Rising inflation could be positive for the single currency as the ECB might feel comfortable to end the QE program this year.
Later in the day, US personal spending and income data are due and both should stay at the previous months’ levels. Additionally, the PCE indices will be released and should decelerate slightly.
The EURCHF cross halted its steep decline and stopped at the 1.14 handle. The current short squeeze could take the price to the 200 day moving average around 1.1650, which is the main resistance for the next days.
The support is now seen at the 1.15 level and if not held, the price might deteriorate to 1.1440, where bids will be located again. In all cases we strongly recommend to have rigorous money and risk management.
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