Euro Drops Despite In-Line Inflation Data Ahead of FOMC Minutes

The euro today has traded erratically against the US dollar from the start of today’s session as both sellers and buyers pushed to gain control of the single currency. The EUR/USD currency pair traded both higher and lower as it struggled to find direction despite the release of positive eurozone inflation data, but was heading lower at the time of writing.
The EUR/USD currency pair today traded in a range marked by a high of 1.1580 and a low of 1.1547, but was unable to break above the crucial 1.1600 level.
The currency pair was on a downtrend at the beginning of today’s session, but recovered briefly before heading lower. The release of the final eurozone consumer price index data for September by Eurostat had a minimal impact on the pair despite the various inflation prints meeting expectations. The headline CPI print came in at a monthly 0.5%, which translated into an annualized 2.1%, and both figures were in-line with expectations. The core CPI print also meet expectations by coming in at an annualized 0.9%. The release of the positive eurozone construction output data for August also had a muted impact on the pair.
The pair’s performance was further affected by the ongoing EU-UK Brexit talks as well as Italy’s fiscal plans, and the upcoming 2-day European Union Leaders Summit.
The currency pair’s short-term performance is likely to be affected by the release of US housing data and FOMC meeting minutes scheduled for later today.
The EUR/USD currency pair was trading at 1.1539 as at 11:38 GMT having dropped from a high of 1.1580. The EUR/JPY currency pair was trading at 129.58 having declined from a high of 130.15.

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