Euro Moves Higher, Supported By Eurozone CPI Data

Forex News

The euro improves versus the US dollar, with the EUR/USD pair is trading at 1.1682 level. The single currency has gained 0.17% today. The Italian parties renewed attempts to form a government, easing concerns about the wider impact of a political crisis in the Eurozone's third-largest economy. The euro has lost 3.5% this month amid rise of a potentially eurosceptic government in Italy and the impact that could have on the stability of Europe.

Today’s data showed, that inflation in the Eurozone accelerated in May. Eurostat said its consumer price index rose to 1.9% year-on-year in May, up from 1.2% in April and above expectations for a reading of 1.6%. The main factor behind the increase was the recent sharp rise in oil prices. Energy prices were up 6.1% in the year to May, more than double April's 2.6%. Core inflation, which strips out volatile items such as energy and food, rose to an annual rate of 1.1% from 0.7% in the previous month.

Also, from the Eurozone, the unemployment rate fell to the lowest level since the end of 2008 in April. The unemployment rate fell to 8.5% in April from 8.6% in March. However, the rate was slightly higher than the expected 8.4%.