Preparing for US labor market data for the month of March, dollar still goes its own way as before, strengthening against most of its major counterparts. Monday’s data helped to support the bullish trend primarily due to Personal Consumption Expenditure Core Price Index, accelerating on an annual basis by 1.4%, adding optimism related to inflation target issue of Fed. Thus, bets for sooner rate-hikes firmed again and will be mostly focused on non-farm payrolls data.
We remained bullish on the dollar/bearish on the EUR/USD currency pair from a long-term perspective, but this week cautious about possible short-term spikes on US job market data.
Take profits remain on $1.0656 and the major at $1.0491.
As for short-term correction, we expect bullish EUR/USD positions to be closed successfully at $1.0889, or $1.10.
