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Euro Declines on Weak Eurozone CPI Data Ahead of G20 Summit

November 30, 2018 at 12:14 by Simon Mugo

Stacks of shiney euro coins plus some notesThe euro today headed lower against the US dollar from the early European session following the release of the mixed German retail sales data. The EUR/USD currency pair extended its losses in the mid-European session after the release of disappointing eurozone inflation data.

The EUR/USD currency pair today declined from a high of 1.1400 in the Asian session to a low of 1.1356, but had retraced some of its losses at the time of writing.

The currency pair opened today’s session in a consolidative phase, but soon headed lower as the US dollar recovered from yesterday’s lows. The release of the German retail sales data for October by the Federal Statistical Office triggered a significant decline by the pair. The monthly retail sales contracted by 0.3% missing expectations of a 0.4% expansion. The country’s import price index data beat expectations, but could not lift the pair. The release of the eurozone inflation data for November by Eurostat drove the pair to new daily lows as the core CPI print missed expectations by 0.1%.

The currency pair rallied slightly following the release of the final Italian Q3 GDP data by Istat, despite it missing expectations by 0.1%. The pair was under constant selling pressure due to the prevailing risk-off sentiment, which favors the safe haven US dollar.

The currency pair’s short-term performance is likely to be influenced by the outcome of the meeting between Chinese President Xi Jinping and Donald Trump at the G20 Summit later today.

The EUR/USD currency pair was trading at 1.1368 as at 12:04 GMT having dropped from a high of 1.1400. The EUR/JPY currency pair was trading at 129.02 having fallen from a high of 129.27.

If you have any questions, comments, or opinions regarding the Euro, feel free to post them using the commentary form below.

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