Euro Dips Slightly After Testing $1.16 Level

Forex News

The euro fell slightly versus US dollar today, after posting considerable gains on Thursday. The EUR/USD pair is trading at 1.1583, down 0.07% on the day. Earlier today, the single currency climbed above the $1.16 line.

Eurozone industrial production rose more than expected in August. Today’s data showed, that industry output in the Eurozone increased by 1.0% on the month and by 0.9% year-on-year in August. Both figures are a positive surprise after economists had forecast a smaller 0.4% rise month-on-month and a 0.2% drop from a year earlier.

Consumer price inflation in Germany accelerated in September to the highest level in seven years. The Destatis reported, that consumer prices rose 2.3% year-on-year in September, which is the fastest pace since November 2011, when inflation was 2.4%. Prices in August rose by only 2%. On a monthly basis, inflation rose to 0.4% in September from 0.1% in August. Both annual and monthly rates are consistent with the initial estimate.

Yesterday, the ECB released its minutes from the September meeting. The protocol showed, that policymakers remain concerned that global trade tensions could dampen the Eurozone growth. However, the policymakers decided that the Eurozone economy was strong enough to allow the ECB to maintain its ‘slow but steady’ stance of tightening policy.