EUR/USD Rallies After Final Estimate of November CPI

The euro gained on the US dollar today, finding help in domestic macroeconomic data and the weakness of the greenback. The shared 19-nation currency also rallied against the Japanese yen but fell against other most-traded currencies, including the Great Britain pound and the Swiss franc.

Eurozone annual inflation in November was finalized at 1.5%, unchanged from the preliminary estimate and matching forecasts. That was a small increase from the October’s reading of 1.4%. The core Consumer Price Index (prices for consumer goods excluding food, energy, alcohol, and tobacco) rose by 0.9%, matching expectations as well and showing the same rate of growth as in the preliminary report and the previous month.

Trading during this week is expected to become lighter and lighter as Christmas is drawing closer. While voting on the final US tax reform bill will happen this week, markets priced in the positive outcome of the vote, meaning that it should have a limited impact on the Forex market.

EUR/USD rallied from 1.1744 to 1.1801 as of 17:38 GMT today, touching the daily high of 1.1834. EUR/JPY gained from 132.40 to 132.71. At the same time, EUR/GBP slid from 0.8819 to 0.8807.

If you have any questions, comments or opinions regarding the Euro,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *