Euro slips ahead of CPI data
The euro is trading at $1.2785, down 0.3% as traders quickly take their profits off the table as the dip in the US dollar was short-lived. Yesterday, the euro hit a three-week high versus the US dollar on the back of weak manufacturing figures, but now the focus is on the final CPI report from the eurozone at 10am. The consensus is for a reading of 0.3%.
‘Deflation’ has been the watchword of the eurozone lately. If the report misses analysts' estimates it could drive the euro to $1.2629, and only a large jump in inflation could push the euro back to $1.2840.