Euro Posts Slight Decline on Disappointing Eurozone CPI Data

The euro today registered a slight decline against the US dollar following the release of the Eurozone Consumer Price Index data in the early European session. The EUR/USD currency pair began today’s session in positive territory and had rallied to highs above 1.2000 before trimming some of its gains after the CPI release.
The EUR/USD currency pair today declined from a high of 1.2010 to a low of 1.1965, but was still higher for the day having opened today’s session at 1.1949.
The currency pair was on uptrend from the beginning of today’s session largely due to the weaker US dollar. The greenback’s weakness was largely attributed to yesterday’s FOMC rate decision, which left overnight rates unchanged. The release of the advance Eurozone CPI data by Eurostat triggered a slight decline in the EUR/USD pair as the flash figures were below expectations. The core CPI print came in at an annualized 0.7% versus the expected 0.9%, while the headline CPI print was recorded at 1.2%, which was lower than the forecasted 1.3% print.
The selling pressure on the greenback is what has kept the currency pair from falling to lower levels despite the disappointing inflation figures. However, it remains to be seen whether buyers shall step up to boost the dollar given the upcoming US economic releases.
The currency pair’s short-term performance is likely to be affected by US releases such as the ISM Non-Manufacturing Composite, the jobless claims data, and the durable goods orders scheduled for later today.
The EUR/USD currency pair was trading at 1.1982 as at 10:48 GMT having declined from a high of 1.2010. The EUR/JPY currency pair was trading at 131.14 having dropped from a high of 131.68.

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