EUR/USD targets 1.2400 on US CPI, fresh daily highs

• The pair climbed to the 1.2385/90 band, fresh session tops.
• The greenback dropped to lows in the sub-90.00 area.
• US Core CPI rose in light with expectations 1.8% YoY.

A bout of buying interest around the European currency is now lifting EUR/USD to fresh tops in the 1.2360 region following the publication of US CPI for the month of February.

EUR/USD higher post-data

Spot quickly climbed to new 3-day peaks after US inflation figures tracked by the CPI showed headline consumer prices rising at an annualized 2.2% during February and 0.2% inter-month.

In addition, consumer prices stripping food and energy costs rose 1.8% over the last twelve months and 0.2% on a monthly basis. All prints matched initial estimates, leaving no room for upside surprises and thus weighing down on the buck.

The pair accelerated the leg higher in the wake of the US CPI, now targeting the critical barrier at 1.2400 the figure as market participants now expect the Fed to refrain from embarking on a more aggressive rate path.

EUR/USD levels to watch

At the moment, the pair is up 0.28% at 1.2374 and a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18). On the downside, immediate contention emerges at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18).