Euro Falls to 11 Day Low After German Inflation Miss

The euro slipped to a 11-day low against the dollar on Monday after German inflation data came in slightly weaker than expected, which took some pressure off the European Central Bank to wind down its stimulus programme.

Having earlier traded lower on concerns over a travel ban implemented by U.S. President Donald Trump, the euro’s fall helped the dollar index – which measures the greenback against a basket of other major currencies – climb half a percent to above 101 for the first time in 10 days.

The latest figures showed German consumer price inflation hit 1.9 percent in January. While that was the highest in three-and-a-half years, it was slightly below forecasts for a 2 percent annual rise.

A sustained recovery in German inflation would give Bundesbank President and ECB rate-setter Jens Weidmann more scope to argue for winding down the ECB’s bond-buying programme more quickly.

Against the yen, though, the dollar remained weak, trading down 0.4 percent at 114.27 yen by 1300 GMT, as investors sought the traditional security of the Japanese currency after U.S. immigration curbs put the spotlight back on Trump’s protectionist bent and the risks it poses for the economy.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.