Euro Gains Ground After Eurozone Inflation Report
The euro shows gains versus US dollar at the beginning of the week. The EUR/USD pair is trading at 1.1337 level, having added 0.28% on the day. Last week, the single currency tumbled after the European Central Bank cut its inflation and growth forecasts and struck a cautious tone about the outlook for the world economy.
At the Thursday meeting, the ECB left interest rates on hold and confirmed plans to wind up its massive bond purchasing stimulus program. The bank also downgraded its growth forecasts for the Eurozone from 2.0% to 1.9% for 2018, and from 1.8% to 1.7% in 2019.
The annual rate of inflation in the Eurozone eased more sharply than first estimated in November. Eurostat reported that Eurozone consumer prices were 1.9% higher in November than a year earlier, a sharper drop in the annual rate of inflation from 2.2% in October than previously estimated. Core inflation, which excludes energy, food, alcohol and tobacco prices, rose by an annual rate of 1.0%, unchanged from the preliminary estimate and in line with forecasts.
It was also reported, that the Eurozone's trade surplus with the rest of the world was 1.4 billion euros in October, down from 17.8 billion a year earlier as exports jumped 11.4% year-on-year in October while imports surged 14.8%.