Ella 
In early Asian trading on Thursday, the EUR/USD currency pair remained on the defensive near 1.0740. U.S. inflation data unexpectedly rose in March, pushing the U.S. dollar to an annual high and weighing on EUR/USD. Investors will be closely watching the European Central Bank’s (ECB) interest rate decision and press conference later on Thursday, as well as U.S. producer price index data.
The European Central Bank is expected to keep interest rates at a record high at its April meeting on Thursday, but President Christine Lagarde is likely to discuss inflation data and the possibility of a rate cut in June. The Federal Reserve may delay its easing cycle this year due to a strong economy and an upward surprise in inflation. The European Central Bank insists on independent policy formulation, but the differences in interest rate policies between the Federal Reserve and the European Central Bank may cause certain selling pressure on the euro (EUR) and be negative for EUR/USD.
U.S. inflation data unexpectedly rose in March, fueling speculation that the Federal Reserve will delay cutting interest rates. The dollar rose to a new yearly high above 105.30 following the release of U.S. inflation data. The U.S. consumer price index (CPI) rose 0.4% on a monthly basis in March, compared with expectations for an increase of 0.3%. Data from the U.S. Labor Department on Wednesday showed inflation rising at an annual rate of 3.5%, compared with expectations for a 3.4% increase.
