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EURUSD unfazed by strong inflation data

EURUSD unfazed by strong inflation data

Extending the post-FOMC retracement from nearly two-week highs, EURUSD struggles to regain the upside momentum for a third day in a row on Friday.

The pair failed to confirm a break above 1.12 and retreated to the 1.1150 area which is under threat now.

Interestingly, the euro remains under pressure despite better-than-expected European inflation data. According to the preliminary estimates, the euro zone headline CPI rose by 1.7 y/y in April as compares to 1.4% in the previous month while the so-called core CPI edged higher to 1.2% from 0.8% in March.

The common currency failed to take advantage from the report as the dollar demand remains elevated ahead of the key US jobs report due later today. Strong figures could send the greenback even higher and thus increase the selling pressure on EURUSD in the short term.

The immediate support after a break below the 1.1150 area comes at 1.1110. On the upside, the euro needs to regain the 1.12 handle to see a better short-term technical picture.