Even though the euro is a little higher against some of its major counterparts, the 18-nation currency is headed for a weekly decline. The latest economic data confirms that rises in consumer prices continue to slow.
For the seventh week in a row, the euro is set for a weekly decline. This run of declines is the longest in more that 10 years. The latest economic data, focusing on consumer prices, was released earlier today. It looks as though another recession could be a real possibility, and that is impacting the euro.
Consumer prices rose 0.3 per cent year over year in August. However, the year over year increase in July was 0.4 per cent. This news means that things are slowing in the eurozone. The ECB likes to keep inflation at just below 2 per cent, so this is an issue from that standpoint as well.
There is speculation that the ECB will have to take more steps to stimulate the eurozone economy, and that doesn’t promise well for the euro, either. More details are awaited for next week, when policymakers meet and Mario Draghi makes an announcement about policy.
At 10:53 GMT EUR/USD is up to 1.3185 from the open at 1.3182. EUR/GBP is down to 0.7947 from the open at 0.7948. EUR/JPY is up to 137.1085 from the open at 136.7270.
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