The euro fell against the US dollar and the Great Britain pound on Thursday despite seemingly positive macroeconomic data. The euro performed better against various other currencies, including the Japanese yen.
Eurozone annual inflation was at 2.0% in February while experts had expected it to stay 1.8%, the same as in January. This means that inflation reached the central bank’s target. Other economic reports released over the Thursday’s session were also for the most part better than expected.
Yet the shared 19-nation currency reacted tepidly to the favorable data. Market analysts speculated that it happened because core inflation in fact remained weak. Indeed, annual inflation without volatile components was at just 0.9%, the same as in the preceding month. Of course, expectations of monetary tightening from the Federal Reserve also contributed to the currency’s weakness, especially against the dollar.
EUR/USD declined from 1.0546 to 1.0506 as of 22:43 GMT today. EUR/GBP went down from 0.8578 to 0.8564. At the same time, EUR/JPY edged up from 119.94 to 120.17, touching the daily high of 120.48.
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