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31 Oct 2013
Euro continues to slide on sharp inflation drop
FXstreet.com (London) - The euro has continued to slide, with a surprise drop in inflation fuelling expectations of a rate cut from the European Central Bank.
EUR/USD has fallen 0.80 percent following inflation numbers showing a near four-year low in October. A flash estimate from the European Union's Statistics Office showed that inflation fell to 0.7 percent year-on-year, the first time that it has dropped below 1 percent since February 2010.
The flash estimate was a sharp fall from consensus expectations of 1.1 percent.
With Eurozone unemployment rates still eye-wateringly high, the drop in inflation has raised expectations of an ECB rate cut, already at 0.5 percent.
Spanish unemployment is currently 26.6 percent, with the Eurozone at 12.2 percent.
EUR/USD is currently USD1.3617.
EUR/USD has fallen 0.80 percent following inflation numbers showing a near four-year low in October. A flash estimate from the European Union's Statistics Office showed that inflation fell to 0.7 percent year-on-year, the first time that it has dropped below 1 percent since February 2010.
The flash estimate was a sharp fall from consensus expectations of 1.1 percent.
With Eurozone unemployment rates still eye-wateringly high, the drop in inflation has raised expectations of an ECB rate cut, already at 0.5 percent.
Spanish unemployment is currently 26.6 percent, with the Eurozone at 12.2 percent.
EUR/USD is currently USD1.3617.