Single Currency Continues Slight Recovery
The euro continues to recover slightly. The euro/dollar pair increased by 0.15% to the level of 1.1933 today. The focus of market participants are on the data on the US consumer price index, released yesterday. The report turned out to be weaker than expected, thus provoking a correction of the dollar after its three-week rally.
The US Labor Department said its CPI rose by 0.2% in April as increases in the cost of gasoline and rents were tempered by a drop in motor vehicle prices. The core CPI grew by only 0.1% in March. On annual basis, the CPI rose by 2.5%, the biggest gain since February 2017. Economists had forecast the CPI rebounding 0.3% in April and the core CPI climbing 0.2%.
ECB President Mario Draghi gave no clues about the future of quantitative easing program (QE) during a press conference in April. Analysts are expecting details on the future of the 30 billion euro ($36 billion) monthly asset purchase program by July, at the latest. Meanwhile, the improved growth and inflation rates seen throughout 2017 led many analysts to forecast that QE will come to an end in September, when it is due to expire. But some analysts have become more pessimistic on the prospects of the euro area over the last few weeks, due to lower retail sales and industrial production numbers.