- Annual core inflation in the eurozone ticked up to 1% in September.
- Disappointing retail sales from the United States (US) weighed on the USD.
- US Dollar Index looks to post its lowest daily close since mid-September.
The broad-based USD weakness on Wednesday allowed the EUR/USD pair to gain traction and climb to its highest level in a month at 1.1085. As of writing, the pair was trading at 1.1072, adding 0.37% on a daily basis.
The data published by the Eurostat on Wednesday revealed that inflation, as measured by the core Consumer Price Index (CPI), rose to 1% on a yearly basis in September from 0.9% in August to help the shared currency stay resilient against its rivals. Other data revealed that the trade surplus (seasonally adjusted) widened to €20.3 billion in August.
USD underperforms amid disappointing data
Later in the day, the United States (US) Census Bureau reported that retail sales in September declined by 0.3% in the US and weighed on the USD. The US Dollar Index, which tracks the Greenback’s value against a basket of six major currencies, dropped below the 98 mark for the first time since mid-September.
Meanwhile, in its closely-watched Beige Book, the Federal Reserve noted that some of the business contacts that took part in the survey said that they have lowered their growth outlook for the next 6-12 months. “Contacts in some districts suggested persistent trade tensions and slower global growth weighed on activity; the early impact of a GM auto strike was limited,” the Fed said.
Technical levels to watch for
Share
