News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your $AUD market update from @DanielGMoss here:
  • The US Dollar has proved buoyant thus far in 2021. Will it continue now that administrations have changed? Depends on fiscal stimulus. Get your market update from @CVecchioFX here:
  • President Biden acting quickly. Has already signed a run of executive orders, one of which is brining the United States back into the Paris Agreement. I think a number of industries expected this, including the auto-manufacturers
  • President Biden signs new executive orders revoking the Keystone XL Oil Pipeline permit, US will rejoin Paris Climate Agreement - BBG
  • We had the BOC and Brazilian Central Bank rate decisions today. Coming up over the next 24 hours, we have the BOJ, Norges, South African Reserve Bank, Turkish Central Bank and ECB rate decisions. On balance, unlikely a serious dictate for global risk trends
  • Asian futures point higher as US equities close at record highs - BBG
  • 🇧🇷 Interest Rate Decision Actual: 2% Expected: 2% Previous: 2%
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.80% 🇳🇿NZD: 0.73% 🇦🇺AUD: 0.66% 🇬🇧GBP: 0.20% 🇨🇭CHF: -0.12% 🇪🇺EUR: -0.19% View the performance of all markets via
  • Poll: Which direction do you think $EURUSD will break when it does finally clear this 1.2150-2050 range?
  • Heads Up:🇧🇷 Interest Rate Decision due at 22:00 GMT (15min) Actual: 2% Expected: 2% Previous: 2%
Euro Unresponsive to a Decline in Inflation

Euro Unresponsive to a Decline in Inflation

Benjamin Spier, Technical Strategist
  • Euro-zone inflation falls to a four month low
  • Unemployment remains at an all time high
  • Euro unresponsive despite scrutiny of ECB policy

Want to trade with proprietary strategies developed by FXCM? Find out how here.

A decline of the Euro-zone annual inflation to a 4-month low in August, and only slightly above a 3.5 year low, failed to move the Euro, despite uncertain monetary policy.

The Eurostat’s initial estimate for the consumer price index was 1.3% higher than August 2012, thereby lower than expectations for 1.4% annual inflation and down from 1.6% in July. Euro-zone economic confidence rose to 95.2 in August, beating expectations for 93.8 and up from 92.5 in July.

Additionally, the Euro-zone unemployment rate remained at an all-time high of 12.1% for the fifth consecutive month in July, as was expected.

The lack of a Euro reaction to the lower than expected inflation was surprising given the recent focus on ECB policy. A divergence in comments between President Draghi and the Bundesbank has left many speculating if the ECB will sooner cut interest rates again or raise them. Therefore, surprisingly low inflation should have made a stronger case for accommodative policy and possibly driven the Euro lower.

However, the Euro continues to trade slightly below 1.3250 against the US Dollar at the time of this writing. EUR/USD may see support by a downward trend line from February, currently at 1.3240.

New to Forex? Watch this video

EURUSD Daily: August 30, 2013

Euro_Unresponsive_to_a_Decline_in_Inflation_body_eurusd_daily_chart.png, Euro Unresponsive to a Decline in Inflation

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.