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1 Nov 2013
Euro declines in the battle of central banks
FXstreet.com (London) - In the battle of central bank expectations, the euro has continued to slide on potential ECB rate cuts.
The Eurozone experienced below expected inflation in the year to September, according to data released yesterday by Eurostat - up 0.7 percent versus 1.1 percent consensus expectations.
The figures came after an upwards revision in European unemployment rates, from 12.0 to 12.2 percent, level with record highs. The upward revision scuppered hopes of acceleration of Eurozone labour market recovery.
At the same time, improvements in US economic data has increased perceived odds of a tapering of the US Federal Reserve's USD85bn-a-month asset purchase programme, supporting dollar levels. The ISM manufacturing index climbed to 56.4, from 56.2 last month. However, despite strengthening of some data, weak labour market data and the prospect of another debt ceiling stand off when the current limit expires on 7 February May make any early tapering unlikely.
The Eurozone experienced below expected inflation in the year to September, according to data released yesterday by Eurostat - up 0.7 percent versus 1.1 percent consensus expectations.
The figures came after an upwards revision in European unemployment rates, from 12.0 to 12.2 percent, level with record highs. The upward revision scuppered hopes of acceleration of Eurozone labour market recovery.
At the same time, improvements in US economic data has increased perceived odds of a tapering of the US Federal Reserve's USD85bn-a-month asset purchase programme, supporting dollar levels. The ISM manufacturing index climbed to 56.4, from 56.2 last month. However, despite strengthening of some data, weak labour market data and the prospect of another debt ceiling stand off when the current limit expires on 7 February May make any early tapering unlikely.