The final inflation read for August confirmed headline inflation at 1.5%. Core CPI is confirmed at 1.2%. Another measure of inflation excluding some volatile items stands at 1.3%.
EUR/USD is ticking higher within narrow ranges.
Final euro-zone numbers were expected to confirm the initial read: headline inflation rose to 1.5%, somewhat related to the price of oil. Core CPI held steady at 1.2% y/y. Month over month, prices advanced by 0.3% according to the initial print.
EUR/USD started the week in a stable manner, around 1.1940. Resistance awaits at the round number of 1.20. Support is at 1.1910. Further support is at 1.1870, a level the pair fell to recently.
The euro initially ignored Draghi’s complaints about the exchange rate. EUR/USD reached new highs, flirting with 1.21. However, the air came out of the move, aided by a recovery of the US dollar.
The big event of the week is the decision of the of the Federal Reserve. Yellen and her colleagues are expected to begin reducing the Fed’s balance sheet, and the focus will be on the plans for the next rate hikes.
Here are the recent moves on the euro/dollar hourly chart.
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