EUR/USD: Downward Trend Continues
Euro continues to fall versus US dollar. Today, the EUR/USD pair dropped by another 0.48% to trade at 1.1615 level. The single currency is trading at eight-day low against US dollar. American currency remains supported by inflation numbers, which boosted interest rate expectations, as well as easing in trade tensions between the United States and China.
Today’s data showed, that the German wholesale price index (WPI), published by the statistical agency Destatis, and estimating the volume of sales by German wholesale companies, rose by 0.5% in June, slightly slower than 0.8% in the previous month. On an annualized basis, wholesale prices increased by 3.4% in June after growing by 2.9% in May.
The minutes of the ECB’s latest policy meeting showed, that Eurozone interest rates will remain at their current level for as long as needed to raise inflation and the European Central Bank's guidance should be seen as "open-ended". The protocol showed, ECB policymakers at the meeting felt a need to stress that rates would only move if inflation continued to rise back towards the bank's target of almost 2%.