The euro continued to push toward 1.50 - a level that could offer significant resistance - on Wednesday amidst broad US dollar weakness and after data showed that Euro-zone industrial output rose for a fourth month in August, this time at a rate of 0.9 percent from July. Meanwhile, the annual rate fell 15.4 percent, the slowest contraction in eight months, which added to evidence suggesting that the region is in the process of emerging from recession. On Thursday, the final reading of Euro-zone CPI is anticipated to confirm that the annual rate fell to -0.3 percent in September from -0.2 percent. That said, the ECB has said many times in the past that they expect inflation rates to remain negative before returning to positive levels in coming months, so readings in line with expectations shouldn’t have too much of an impact. However, a surprisingly steep drop could prevent the currency from making any additional headway.
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