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Draghi sees weaker core inflation – EUR/USD weakens

Draghi erased doubts cast by some of his colleagues at the ECB. Contrary to some saying that there is no need to act,  the president of the ECB reiterated that his institution will re-examine the policy in December.

Draghi also explained, and EUR/USD fell, but still awaiting confirmation.

More importantly, he expressed new worries: the strengthening in core inflation  is weakening. So if we could blame low inflation on oil prices (in the euro-zone and everywhere else), this is still the single ECB mandate.

Nevertheless, some found comfort in the advance of core inflation from the lows of 0.6% to 1%. But now, Draghi said this is weakening.

So, EUR/USD is weakening:  sliding to lower ground and slipping below 1.07. So far, the move to lower ground is not confirmed. Support awaits at 1.0660, but perhaps a break below this level will depend on Fed Chair Janet Yellen, which speaks later on:

EURUSD slips on Draghi November 12 2015

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.