Euro Slips to Day’s Low on Euro Zone Inflation Data

Euro Slips to Day’s Low on Euro Zone Inflation Data
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(November 30, 2017) The euro slid to the days lows against the dollar on Thursday after data showing that inflation in the euro area missed forecasts last month, while another report showed that the unemployment rate in the region hit an almost nine-year low.

EUR/USD touched a low of 1.1810 and was at 1.1831 by 05:41 AM ET (10:41 AM GMT), off 0.14% for the day.

The euro slid after data showing that euro zone inflation rose by less than expected in November, highlighting weak price growth in the region and supporting the European Central Bank’s plan to remove stimulus only gradually.

Eurostat reported that inflation in the 19-country euro zone rose to an annual rate of 1.5% in November from 1.4% in October.

Economists had forecast an increase to 1.6% and inflation remained below the ECB’s target of close to but below 2%.

At the same time, another report showed that the unemployment rate in the euro zone dropped to 8.8% in November, the lowest since January 2009 as the recovery in the region continues.

The euro was also weaker against the pound, with EUR/GBP down 0.52% at 0.8790.

Sterling was boosted by hopes that a deal on Brexit would be reached.

A report earlier on Thursday that Britain is close to a deal over the Northern Ireland borderadd to optimism after reports earlier in the week that Britain has reached a deal with the European Union over the size of its Brexit divorce bill.

The British government, however, said that nothing had been finalized in Brexit talks.

Sterling was near two-month highs against the dollar, with GBP/USD last at 1.3456 after going as high as 1.3480 earlier.

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