The euro is trading up at around $1.1760 against the U.S. dollar after the US inflation rose at a somewhat disappointing 2.2% pace over the year.
The U.S. central bank is widely expected to raise the rate by 0.25% this afternoon.
What’s more important is what it will say it’s going to do in 2018 about the interest rates. If the Fed’s stance is very hawkish, it will certainly push the U.S. dollar higher. This morning’s inflation numbers did not give the Fed very much confidence in the rate hiking cycle but we shall find out this afternoon.
The euro suffered a setback yesterday and dipped briefly below $1.1720. This morning’s CPI number helped the euro recover some losses and rose up to $1.1762.
The buy position opened from my MT4 EA last Friday after the U.S. job report closed with a loss yesterday. The stop loss target was hit.
The strategy can be found here.
The latest result can be found here.