Euro Slides As ECB Says Inflation Seen Falling

Published on Nov 09, 2023 17:22

The Euro stayed under stress today amid a firm undertone in the US dollar generally and as the markets waited for further comments from the US Fed chief Jerome Powell and the ECB head Christine Lagarde later on in the global day. EURUSD pair is currently quoting at 1.070, down 0.16% on the day. The ECB noted in a latest update today that inflation in the Euro area dropped to 4.3% in September, almost a full percentage point lower than its August level. In the near term, it is likely to come down further, as the sharp price increases in energy and food recorded in autumn 2022 will drop out of the yearly rates. September�s decline was broad-based. Food price inflation slowed again, although it remains high by historical standards. In annual terms, energy prices fell by 4.6% but, most recently, have risen again and become less predictable in view of the new geopolitical tensions. Inflation excluding energy and food dropped to 4.5% in September, from 5.3% in August. This falling trajectory of prices could keep the single currency under check in near term. On the NSE, the EURINR futures closed at 89.03, up marginally on the day but gave up ground on a continued basis during the session after sliding under 89.20 mark.