EUR/USD Rises as Inflation Stalls

EUR/USD was falling today, but rebounded after data showed that inflation was not growing in the United States. The currency pair did not demonstrate strong moves today as traders are reluctant to risk ahead of tomorrow’s announcement of Federal Reserve monetary policy decision. It is not clear if the central bank will taper its monetary stimulus or not, therefore it is risky to take positions right now.
CPI was unchanged in November on a seasonally adjusted basis. The index fell 0.1% in October and analysts have expected to rise at the same rate in November. At the same time, core CPI was up 0.2%, above expectations. (Event A on the chart.)
Current account deficit was at $94.8 billion in the third quarter of 2013. It was below second quarter’s $96.6 billion and the median analysts’ estimate of $101 billion. (Event A on the chart.)

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