It's a little bit "strange" picture. The U.S. dollar rises against the euro despite the mixed U.S. economic data. The U.S. economy added only 126,000 jobs in March, after a rise of 264,000 jobs in February. The consumer inflation in the U.S. is still below the Fed's 2% target, and wages growth is still low.
Federal Reserve's March monetary policy meeting minutes showed that Fed officials were divided over when to start to hike interest rate. Some official said that it is better to raise interest rate in June, some officials would like to wait longer and some officials would prefer to wait until 2016.
Despite the fact that the economic data from the Eurozone is not better than the U.S. economic data, we should see a consolidation of the U.S. dollar as a possible interest rate hike by the Fed is already largely built into the price of the U.S. dollar. The euro could rise toward $1.1100. If the upcoming economic data from the U.S. is solid, the euro could test the low of March 13 at 1.0461.
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