Anna 
On Wednesday, the EUR/USD pair edged higher, reclaiming the 1.0770s and extending the previous day’s rebound from six-week lows. However, it remains uncertain whether this movement reflects a corrective phase or a reversal of the prevailing short-term downtrend, leaning towards the former.
Despite the release of Eurozone economic data, including the Harmonized Index of Consumer Prices (HICP) and the Unemployment Rate, the pair showed limited reaction. The data indicated a further cooling in price pressures, with headline inflation in the Eurozone dipping to 2.4% year-on-year (YoY) in March, contrary to economists’ expectations of it remaining unchanged at 2.6%, as reported by Eurostat. Similarly, core inflation slipped to 2.9% from 3.1%, below the forecasted steady rate.
On a monthly basis, Eurozone inflation rose by 0.8%, compared to 0.6% in February. However, the Unemployment Rate in the Eurozone increased to 6.5%, surpassing expectations of remaining unchanged from its previous level of 6.4% (revised up to 6.5%).
While the data did not significantly impact the pair, it has heightened the likelihood of an earlier interest-rate cut from the European Central Bank (ECB), potentially even raising the prospect of a cut in April. The mixed economic indicators signal ongoing challenges within the Eurozone economy and may influence the ECB’s monetary policy decisions in the near term.
