Home Euro zone inflation misses with 1.5% – EUR/USD ticks
Forex News Today: Daily Trading News

Euro zone inflation misses with 1.5% – EUR/USD ticks

Inflation is not going anywhere fast in the euro-zone: 1.5% y/y, standing in place. In addition, core inflation also slips to 1.1%, below predictions.  

The drop in core inflation could push the European Central Bank to opt for a more moderate plan for tapering the bond-buying scheme (QE).

EUR/USD ticks down to 1.1789.

The preliminary inflation data for September was expected to show a small rise in y/y prices: 1.6% against 1.5% in August. Core inflation was forecast to remain unchanged at 1.2%.

EUR/USD was flirting with 1.18 ahead of the publication.

Earlier in the day, France released its own CPI estimate, and it showed a smaller than expected monthly drop of 0.1% instead of 0.2% predicted. Germany’s CPI, released yesterday, fell short of expectations. Spain’s numbers came out as expected.

The fall in euro/dollar was driven by the strength of the greenback. The tax reform proposed by Trump is one of the key reasons for the surge. In the old continent, the euro suffered from the results of the German elections: a fractured parliament that makes life tough for Chancellor Angela Merkel.

More:  EUR: Less Favorable Outcome Of German Election EUR Negative But Downside Likely Limited – BTMU

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.