The dollar started the week on the back foot, with investors continuing to sell after last week’s dovish statement from the Federal Reserve. EUR/USD quickly pushed through both 1.08 and 1.09 on Monday as the markets pushed back the estimated date of the Fed’s first rate hike.
The euro found further support from a better than expected German manufacturing PMI which came in at 52.4 better than the 51.5 expected and the highest release since July 2014. It appears the eurozone’s largest economy is beginning to pick up steam after a sluggish 2014. Tuesday saw the much anticipated CPI release from the UK with inflation falling to zero for the first time in 50 years.
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