The common currency rose 0.10% on the day, brushing aside weak inflation data. Flash estimates for May put the inflation rate to rise by 1.2%. This was a sharp pullback from the 1.7% increase the month before and missed estimates of a 1.4% increase. Core inflation which excludes food and energy prices rose 0.8%, down from 1.3% previously.
EURUSD Reclaims the 1.1200 Handle
The common currency posted gains, rising to settle above the 1.1200 handle by Tuesday’s close. Price action remains a bit volatile near the top as the euro currency is seen trading near the 1.1250 resistance level. If the bullish momentum is maintained, EURUSD could be seen advancing gains to test the 1.1400 level.
