The ECB is taking note of low inflation figures

EUR/USD Reverses Close to 1.20 Again, as Eurozone Inflation Remains Negative

Posted Tuesday, December 1, 2020 by
Skerdian Meta • 1 min read

Inflation was weakening in the Eurozone earlier this year, during the lockdowns in spring, although it was holding up in positive territory until August. In August, the CPI (consumer price index) turned negative, declining by 0.2% YoY, while in September it fell by 0.3%.

In November, the CPI was expected to tick higher to -0.2% again, but it fell short of the expectations and remained at 0.3%. Below, you will find the inflation report for November:

Latest data released by Eurostat – December 1, 2020

  • November preliminary CPI -0.3% vs -0.2% expected
  • October CPI was -0.3%
  • November Core CPI YoY +0.2% vs +0.2% expected
  • October core CPI was +0.2%

Eurozone inflation remains more subdued, with the readings unchanged for November, as core inflation stays at a record low. The ECB will be taking further action next month, in an effort to deal with the fallout from the virus crisis, in the hopes that it will inadvertently spur higher price pressure into the new year.

The EUR/USD was climbing towards 1.20 this morning, after it pierced that big round level yesterday and retreated back down. But, it reversed lower today, reaching 1.1980, which is a sign that buyers are perhaps done, now that they have reached that level, and we might see a decent pullback lower in the coming days.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments