currency.
EURUSD remains weak on Friday and continues falling. The current quote for the instrument is 1.1649.
The statistics published by the Euro Area today weren’t too positive. The preliminary report on the inflation in August was 2.0% y/y although it was expected to remain unchanged at 2.1% y/y. the Core Inflation was 1.0% y/y, which also fell short of market expectations.
The inflation decline in August is no good signal for the Euro. The July reading was the highest over the last five years and a half and everyone thought that the problem of the inflation decline had been solved. One thing is that there is no sense in keeping the price dynamics in August, when many European citizens are on leave and businesses slow down a bit. On the other hand, this decline should better be temporary, otherwise the ECB will have to keep the benchmark rate unchanged for a while.
The Unemployment Rate in July remained the same as the month before, 8.2%. However, the indicator wasn’t really expected to change.
Later in the evening, one should pay attention to the final report on the Revised University of Michigan Consumer Sentiment in August. Probably, the final estimation may be better than the previous one, thus providing some support to the USD.