US CPI Handles, EUR/USD Stuck Near 200 Pips!

<p>&nbsp;As expected, the latest United States (US) inflation data published yesterday had a major impact on currency market movements.</p><p><br /></p><p>The US annual inflation reading for October slowed to 3.2%, lower than the forecast of 3.3%, down from a reading of 3.7% in September.</p><p><br /></p><p>This has strengthened expectations for the Federal Reserve (Fed) to slow down their policy and it is expected that interest rate hikes will not happen at the December meeting.</p><p><br /></p><p>The US dollar weakened significantly in the New York session giving a lot of space to other major currencies in the market to strengthen, especially the Euro.</p><p><br /></p><p>As observed on the chart of the EUR/USD currency pair yesterday, a daily increase of almost 200 pips was successfully recorded.</p><p><br /></p><p>After moving flat at the 1.07000 level since yesterday's Asian session, prices have surged strongly in the New York session as the reaction to inflation data is published.</p><p><br /></p><p>The price's energetic surge breached the 1.08000 focus level before hitting a high of 1.08800 at the end of the New York session, marking a fresh 11-week high.</p><p><br /></p><p><br /></p><p>With this momentum, the price is expected to continue its upward trend to reach even higher levels until the end of the week.</p><p><br /></p><p>The target is to reach the resistance level at 1.08000 after the last time the price traded around that was last August.</p><p><br /></p><p>But investors will remain alert for a decline if it occurs even if the price tendency is to continue to make gains.</p><p><br /></p><p>If there is a decline, the price is seen to test the level of 1.08000 or around 1.07500 which was the resistance level in last week's trading.</p><p><br /></p><p>A continued decline could re-reach the 1.07000 zone to display an important reaction to signal further price movement.</p>