Euro Rises Awaiting Eurozone CPI Report
Euro strengthens mildly versus US dollar, in expectations of Eurozone inflation data. The EUR/USD pair is trading at 1.1354, having added 0.22% on the day. After sharp losses at the start of the week, the euro has reversed directions and recovered, despite some dismal numbers out of Germany and Eurozone.
This week’s economic data gave no boost to the single currency. German GDP fell 0.2% in Q3, marking the first contraction since 2015. Eurozone GDP grew by only 0.2% in Q3, and showed the slowest rate of economic growth since the second quarter of 2014.
Wholesale prices in Germany rose at a faster pace in October. Wholesale price index (WPI) increased at an annual rate of 4% in October from 3.5% recorded in the previous month. On a monthly basis, wholesale prices rose by 0.3% in October after increasing by 0.4% in September.
Markets expect release of the Eurozone CPI report. Headline inflation is expected to rise 2.2% while core CPI is expected to increase 1.1% on the year ending October 2018.