European Session – Dollar mixed ahead of Fed, euro flat on inflation, ZEW
December 17, 2013 1:58 pm
The euro lost some ground against the dollar during today’s European trading, falling by 0.17% to trade at 1.3747.
Eurozone inflation for November was announced in line with expectations at 0.9% year-on-year, slightly elevated from the 0.7% of the previous month. Month-on-month inflation dropped by 0.1%.
Deflation is not a serious cause of concern for the Eurozone, according to ECB President Mario Draghi during testimony before the European Parliament. However, the ECB does stand ready to act if inflation stays too low for too long.
The euro was also down against the Japanese yen, dropping 0.21% to 141.52. The pair distanced itself even further from the 5-year high of 142.81 registered earlier in the month.
A much stronger-than-expected German ZEW investor sentiment survey, at its highest level for more than 7 years, failed to boost the euro.
The pound dropped below 1.63 against the dollar, falling 0.33% to trade at 1.6265. The pound was hurt by UK November inflation that came in slightly lower-than-expected. This in turn could relieve some pressure off the Bank of England to raise interest rates in the future.
Trading and volatility in foreign exchange markets could be subdued until the decision by the Federal Reserve is released on Wednesday.
The euro lost some ground against the dollar during today’s European trading, falling by 0.17% to trade at 1.3747.
Eurozone inflation for November was announced in line with expectations at 0.9% year-on-year, slightly elevated from the 0.7% of the previous month. Month-on-month inflation dropped by 0.1%.
Deflation is not a serious cause of concern for the Eurozone, according to ECB President Mario Draghi during testimony before the European Parliament. However, the ECB does stand ready to act if inflation stays too low for too long.
The euro was also down against the Japanese yen, dropping 0.21% to 141.52. The pair distanced itself even further from the 5-year high of 142.81 registered earlier in the month.
A much stronger-than-expected German ZEW investor sentiment survey, at its highest level for more than 7 years, failed to boost the euro.
The pound dropped below 1.63 against the dollar, falling 0.33% to trade at 1.6265. The pound was hurt by UK November inflation that came in slightly lower-than-expected. This in turn could relieve some pressure off the Bank of England to raise interest rates in the future.
Trading and volatility in foreign exchange markets could be subdued until the decision by the Federal Reserve is released on Wednesday.
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