Euro Drops Despite In-Line Inflation Data Ahead of FOMC Minutes

The  euro today has traded erratically against the  US dollar from the  start of  today’s session as  both sellers and  buyers pushed to  gain control of  the  single currency. The  EUR/USD currency pair traded both higher and  lower as  it struggled to  find direction despite the release of positive eurozone inflation data, but was heading lower at  the  time of  writing.
The  EUR/USD currency pair today traded in  a  range marked by  a  high of  1.1580 and  a  low of  1.1547, but was unable to  break above the  crucial 1.1600 level.
The  currency pair was on  a  downtrend at  the  beginning of  today’s session, but recovered briefly before heading lower. The  release of  the  final eurozone consumer price index data for  September by  Eurostat had a  minimal impact on  the  pair despite the  various inflation prints meeting expectations. The  headline CPI print came in  at  a  monthly 0.5%, which translated into an  annualized 2.1%, and  both figures were in-line with expectations. The  core CPI print also meet expectations by  coming in  at  an  annualized 0.9%. The  release of  the  positive eurozone construction output data for  August also had a  muted impact on  the  pair.
The  pair’s performance was further affected by  the  ongoing EU-UK Brexit talks as  well as  Italy’s fiscal plans, and  the  upcoming 2-day European Union Leaders Summit.
The  currency pair’s short-term performance is likely to  be affected by  the  release of US housing data and  FOMC meeting minutes scheduled for  later today.
The  EUR/USD currency pair was trading at  1.1539 as  at  11:38 GMT having dropped from a  high of  1.1580. The  EUR/JPY currency pair was trading at  129.58 having declined from a  high of  130.15.

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