EUR/USD off one-week low but tepid inflation data could cap advances

Euro slipped yesterday, breaking under 1.1800 mark against the US dollar and testing a one-week low of 1.1750 before witnessing a recovery. EUR/USD pair has been mostly trending up recently and currently lingers at 1.1795, almost unchanged on the day and holding near two and half month high. Data out yesterday showed that Eurozone consumer prices saw a steady growth in November. Inflation was unchanged at 2.1% in November, revised down from 2.2% estimated on December 2. The rate remained slightly above the European Central Bank's 2% target though the reaction to the data saw Euro slip against the US dollar as CPI fell 0.3% from the previous month, marking the first decline since January this year. This can weigh on the single currency in near term. On NSE, EUR/INR futures are trading at 106.01, down 0.14% on the day and giving up earlier gains that saw the pair approach 106.35 mark.

Powered by Capital Market - Live News