LONDON, April 30 (Reuters) - The euro recovered swiftly on Wednesday after hitting a three-week low following a slightly lower than expected first estimate of euro zone inflation for April.
Dealers said the dip below consensus forecasts had been expected after German numbers on Tuesday and was not seen as enough to force the European Central Bank to act immediately to pump more money into the euro zone economy.
There was also talk of strong support through a large option expiry at $1.3750 discouraging efforts to push the euro lower.
“After the German figures yesterday, there was a lot in the price and this is not enough to drive us much further,” said one London-based dealer.
The euro hit a three-week low of $1.37705 before rebounding to a session high of $1.3828 within minutes of the numbers. Against sterling it hit its weakest in two months at 81.955 pence, before recovering.
German Bund futures also fell to a day’s low of 144.09 after the data while European shares turned negative. (Reporting by Patrick Graham; editing by Anirban Nag)