EUR/USD Trading Sideways Awaiting US Inflation Data
The euro remains stable against the US dollar. The euro/dollar pair increased by 0.04% and traded at 1.2356. Some volatility is possible today in the EUR/USD, as investors expect data on the US CPI and retail sales. The Eurostat confirmed its earlier preliminary estimate of gross domestic product growth in the Eurozone in the last three months of 2017 at 0.6% quarter-on-quarter and 2.7% against the same period of 2016. Overall, Eurozone GDP rose 2.5% in 2017, the fastest growth rate since a 3.0% rise in 2007. Eurozone industrial production rose 0.4% month-on-month and 5.2% year-on-year in December.
The GDP of Germany, the Eurozone's biggest economy, grew 0.6% on the quarter and 2.9% year-on-year in the fourth quarter 2017. Consumer price inflation in Germany slowed in January. The final data of the Destatis showed that the growth of the consumer price index amounted to 1.6% in January compared to the same period last year after the growth of 1.7% in December, which was in line with the preliminary estimate. On a monthly basis, the consumer price index fell by 0.7%, as was originally expected, after rising by 0.6% in December.
Global stock markets have steadied after last week’s fall. Today’s US inflation numbers will be closely watched, as inflation fears was a key catalyst of the massive sell-off. Core CPI is expected to fall to 0.2%, while CPI is awaited to improve to 0.1%. Retail Sales in the US is forecast to slow to 0.2%.