The major currency pair is holding firm, having reached ten-week peaks on Wednesday. The current EURUSD exchange rate stands at 1.0880.
The market experienced significant turbulence yesterday evening, triggered by the release of US price reports.
The Consumer Price Index for October turned out to be zero month-on-month compared to the forecasted rise of 0.1% and the previous increase of 0.4%. In annual terms, the inflation rate was 3.2% against the forecast of 3.3% and the September value of 3.7%.
While positive dynamics were not excluded in the main index, the decrease in the growth rate in the core indicator was a real gift to the market. Core prices increased by 0.2% m/m (+4.0% y/y), while no change from the previous value of 4.1% y/y was expected.
A reduction in inflationary pressures is a particularly good signal for the economy and capital markets. The dollar has naturally declined against this background because there are fewer chances for a new cycle of monetary policy tightening by the US Federal Reserve.
The US retail sales statistics are expected today alongside industrial production parameters for the same month.