The stronger exchange rate of the euro is not curbing inflation, at least not yet. CPI is up 1.5% y/y, higher than 1.4% expected and 1.3% seen last time. Core inflation remained at 1.2% as expected. The unemployment rate stayed at 9.1% as expected.

EUR/USD is topping 1.19, recapturing the levels it lost. The highs of 1.2070 seen earlier this week still look far.

The euro-zone was expected to report a rise in the pace of price rises to 1.4% in August after 1.3% in July. Core CPI was expected to remain unchanged at 1.2%. Early indications from Germany, France, and Spain supported these expectations. The unemployment rate was predicted to remain unchanged at 9.1%.

EUR/USD was trading just under the 1.19 level, after bouncing from the cushion at 1.1870. Resistance awaits at 1.20.

Euro/dollar made a remarkable break above 1.20 and reached a new high at 1.2070. However, this did not last too long. The greenback made a comeback that got a boost from excellent US figures. ADP showed a gain of 237K private sector jobs. GDP was revised to the magical 3% level.

The biggest event for the pair this week is the Non-Farm Payrolls. Here are five reasons why this NFP could be very volatile.

Earlier today, Germany reported a drop of 5K in the number of the unemployed. Italy saw its unemployment rate increase to 11.3%.