Euro Recovers As Eurozone CPI Meets Expectation
August 29 2014 - 06:48AM
RTTF2
The euro bounced off from its early lows against most major
currencies in the European session on Friday, after data showed
that the Eurozone inflation matched forecast in August.
Data from Eurostat showed that inflation fell to 0.3 percent
from 0.4 percent in July, flash report from Eurostat revealed. The
rate came in line with economists' expectations.
Inflation has moved further down from the European Central
Bank's target of 'below but close to 2 percent'.
Meanwhile, core inflation that excludes prices of energy, food,
alcohol and tobacco, rose marginally to 0.9 percent in August from
0.8 percent in July.
At the same time, Eurostat also said that the euro area
unemployment rate remained unchanged at a 21-month low in July.The
jobless rate came in at 11.5 percent in July, unchanged from June
and matched expectations. The number of unemployed totaled 18.409
million compared to 18.405 million in June.
Traders are uninspired by the Eurozone CPI and unemployment
data, but attracted for some moves in the ECB policy meeting on
September 4 amid talk of potential further easing in the Jackson
Hole annual summit.
The euro slipped against the other major currencies earlier
after data showed that German retail sales declined unexpectedly in
July.
The euro, which ended yesterday's deals at 1.3181 against the
U.S. dollar, edged up to 1.3194. This may be compared to an early
low of 1.3159. If the euro extends its uptrend, it is likely to
find resistance around the 1.32 area.
Moving away from an early multi-week low of 0.7930 against the
pound, the euro recovered to 0.7946. The euro may test resistance
near the 0.80 region.
Data from Nationwide showed that house prices growth in the U.K.
accelerated unexpectedly in August.Nationwide house prices rose 11
percent year-over-year in August following the 10.6 percent growth
in July. Economists had expected house prices growth to slow to
10.2 percent.
Against the yen, the euro edged up to 137.07 from an early low
of 136.57. At yesterday's close, the euro was trading at 136.69
against the yen.The euro is likely to find resistance around the
135.60 region.
Data from the Ministry of Economy, Trade and Industry showed
that industrial production in Japan added 0.2 percent on month in
July.That was well shy of forecasts for a gain of 1.0 percent
following the 3.4 percent decline in June. On a yearly basis,
industrial production fell 0.9 percent - also missing expectations
for a fall of 0.1 percent following the 3.1 percent jump in the
previous month.
Looking ahead, Canada GDP for June, U.S. personal income and
spending data for July and Reuters/University of Michigan's final
consumer sentiment for August are due be released in the New York
session.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Feb 2024 to Mar 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Mar 2023 to Mar 2024