EUR/USD Fails to Keep Gains, Falls Below Opening Level

EUR/USD attempted to rally after data showed that core inflation was below expectations (0.1% actual versus 0.2% forecast) but failed to maintain upward momentum and slipped below the opening level. Speculators continue to bet on an interest rate hike from the Federal Reserve in December, and that is likely to support the dollar until then.
CPI rose 0.3% in September, matching forecasts exactly. The index was up 0.2% in August. (Event A on the chart.)
Net foreign purchases were at $48.3 billion in August. That was below the July value of $102.8 billion but above the median forecast of $22.0 billion. (Event B on the chart.)

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