FXstreet.com (Barcelona) - The euro surged during the European trading session to test 1.3050, but subsequently backed off to end the day just below 1.3000.

Euro-related data was far from optimistic, but price action continues to simply reflect shifts in risk appetite. Data showed that Euro-zone CPI rose in February for the first time since September at a rate of 0.4 percent, which pushed the annual rate up to 1.2 percent from 1.1 percent.

Nevertheless, the odds remain in favor of one more rate cut by the ECB on April 2 as Credit Suisse overnight index swaps are still pricing in an 80 percent chance of a 25 basis point cut 1.25 percent, said Terri Belkas, analyst at FXCM.