EUR/USD rises to weekly highs near 1.0900 after German inflation data

• Euro hits fresh highs following Eurozone inflation data. 
• German preliminary March annual inflation at 7.4%, above 7.3% expected.
• EUR/USD approaches 1.0900, looking bullish while above 1.0820. 

The EUR/USD rose further following the release of German inflation figures and climbed to 1.0891, reaching the highest level in a week. The pair remains near the highs, supported by a stronger Euro.

Data released on Thursday showed that inflation in Germany, the Consumer Price Index (CPI), declined to 7.4% YoY in March from 8.7% in February, above the 7.5% of market consensus. The CPI rose 0.8% in March according to the preliminary report, above the 0.7% estimated, matching February’s print. 

The data shows a sharp slowdown in the annual rate in Germany, to the lowest since August 2022, but higher than expected. Earlier, Spain surprised with a softer-than-expected CPI. The German 10-year bund yield jumped after the data to 2.35%, the highest level in a week. 

In a few minutes, the US will report Jobless Claims and the third estimate of Q4 GDP growth. 

Looking at 1.0900

The EUR/USD is approaching the 1.0900 mark. If it holds firm above 1.0905, a test of last week’s high at 1.0929 seems likely. On the contrary, 1.0860 has become a support level, followed by 1.0825. 

Technical levels