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Some marginally good news for Mario Draghi: the level of inflation for August has been revised up to 0.4%, like in July. Perhaps the lower levels of the euro are already reflected in the headline inflation. Core inflation has been confirmed at 0.9%.

EUR/USD was trading slightly higher but well within the known ranges, around 1.2960.  It is barely changed on Fed Day.

The final inflation data for the 18 country currency union was expected to confirm the initial figures of 0.3% in CPI and 0.9% in CPI, both year over year.

The 0.3% rise in inflation is the  lowest since 2009. While this is significantly due to dropping energy and food prices, as well as the weakness of the euro, the ECB became more and more worried about it, as the target of the central bank is “2% or a bit below”. Contrary to the US, core inflation is not an official target.

Eventually, the weaker exchange rate of the euro is set to push inflation higher, but this will probably require a bigger fall.

For euro/dollar, the focus today is on the decision of the Federal Reserve in Washington.  Fed Quick Preview: Considerable chance of dollar slide