EUR/USD climbs to 1.1020, its highest level since 5 February
I outlined several reasons for why the euro has been tracking higher earlier today and the latest Saxony inflation report only adds to that.
The key thing in that report - which I would argue overshadows all the other inflation readings today - is that core inflation is seen rising from +1.6% y/y in January to +1.9% y/y in February. This often gives a good view of the overall euro area core inflation trend.
The euro's gains could still be in part be attributed to the other reasons highlighted earlier but this piece of news certainly does no harm to the single currency on the day.
As mentioned earlier, the confluence of resistance near the 1.1000 level is a key area for buyers to break above and if they can keep this up, a test of the 100-day MA (red line) looks to be on the cards next for EUR/USD.
