Important events today:

12:30 UTC – US: inflation for March.

18:00 UTC – US: publication of US Federal Reserve meeting minutes.

Today promises to be the most interesting day of the week. The United States will publish two interesting reports – inflation for March and the minutes of the last Fed meeting. As for inflation, the market expects it to decline and we can agree with that consensus as money supply in American economy is shrinking and energy costs, which historically have been an important inflation component, are now 14% lower than they were a year ago.

Furthermore, from spring the high base effect is starting to “play” and the indicator will also correct strongly due to this factor. As to the minutes of the US Federal Reserve’s meeting we might see hints at the future end of the monetary tightening cycle, as lower inflation allows the Fed not to raise interest rates.

Recommendations: Buy 1.2400/1.2370 and TP 1.2470.