FOREX TradingCharts.com

Forex News: Euro Slides As Eurozone Core Inflation Slows, Italian

Euro Slides As Eurozone Core Inflation Slows, Italian Budget Worries Weigh

09/28/2018 - 07:38:00 (RTTNews)

(RTTNews) - The euro slipped against its major counterparts in the European session on Friday, as an unexpected slowdown in the euro area core inflation in September, as well as a significantly widened budget deficit target for the new Italian government dented investor sentiment.

Flash data from Eurostat showed that core inflation that excludes food, alcohol and tobacco, slowed to 0.9 percent from 1 percent in August. The core rate was expected to edge up to 1.1 percent.

Nonetheless, inflation rose marginally to 2.1 percent, in line with expectations, from 2 percent a month ago.

Investors continued to worry about the Italian budget as the country's new government offered a budget with a deficit target three times as big as the previous administration's goal, putting the country at odds with the European Union.

Yields on Italian government bonds hit three-week highs on worries about the country's ability to pay its debts.

The currency showed mixed trading against its major counterparts in the Asian session. While it held steady against the greenback and the pound, it fell against the franc. Against the yen, it rose.

The euro dropped to more than a 2-week low of 1.1582 against the greenback, from a high of 1.1651 hit at 1:45 am ET. If the euro slides further, 1.13 is possibly seen as its next support level.

The single currency declined to a 4-day low of 1.1281 against the franc, down from a high of 1.1378 touched at 8:00 pm ET. Next likely support for the euro is seen around the 1.10 region.

Data from the KOF Swiss Economic Institute showed that an indicator measuring the trends in the Swiss economy rose in September, suggesting that the downward trend in the economy may have come to a halt.

The KOF Economic Barometer climbed by 3.3 points to a new reading of 102.2. Economists had forecast a score of 100.

Pulling away from a high of 132.31 hit at 10:15 pm ET, the euro reversed direction and slid to an 8-day low of 131.28 against the yen. Continuation of the euro's downtrend is likely to take it to a support around the 129.00 mark.

Data from the Ministry of Land, Infrastructure, Transport and Tourism showed that Japan's housing starts increased for the first time in three months in August.

Housing starts advanced 1.6 percent in August from last year, reversing a 0.7 percent drop in July. Orders were forecast to climb 0.4 percent.

Having advanced to 0.8912 against the pound at 4:30 am ET, the euro changed course and weakened to a weekly low of 0.8878. The euro may test support around the 0.87 region, if it falls again.

Data from the Office for National Statistics showed that the UK economy expanded as initially estimated in the second quarter and the current account gap widened on visible trade deficit and primary income shortfall.

Gross domestic product grew 0.4 percent in the second quarter, unrevised from the previous estimate. The growth rate for the first quarter was revised down to 0.1 percent from 0.2 percent.

The euro declined to more than a 3-week low of 1.7521 against the kiwi, 8-day lows of 1.5078 against the loonie and 1.6055 against the aussie, coming off from its early highs of 1.7637, 1.5187 and 1.6158, respectively. The euro is seen finding support around 1.71 against the kiwi, 1.49 against the loonie and 1.56 against the aussie.

Looking ahead, Canada industrial product price index for August and GDP data for July, as well as U.S. personal income and spending data for August and University of Michigan's final consumer sentiment index for September are set for release in the New York session.

At 9:20 am ET, the Bank of England Deputy Governor David Ramsden speaks at the Society of Professional Economists Annual Conference, in London.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2018 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Dollar Trading Mixed Ahead Of The Weekend (01 hr(s), 17 min(s) ago)
(RTTNews) - The dollar is turning in a mixed performance against its major rivals Friday afternoon ...Full Story»

Loonie Weakens After Disappointing Canada Inflation, Retail Sales Data (05 hr(s), 38 min(s) ago)
(RTTNews) - The Canadian dollar declined against its major counterparts in the European session on ...Full Story»

Loonie Falls After Canada Retail Sales, CPI (07 hr(s), 35 min(s) ago)
(RTTNews) - At 8:30 am ET Friday, Statistics Canada has released Canada retail sales for August an ...Full Story»

Loonie Mixed Ahead Of Canada Retail Sales, CPI (07 hr(s), 38 min(s) ago)
(RTTNews) - At 8:30 am ET Friday, Statistics Canada will release Canada retail sales for August an ...Full Story»

Euro Weakens After EC Warns Italy Over Budget Plan (10 hr(s), 25 min(s), 59 sec(s) ago)
(RTTNews) - The euro declined against its major counterparts in the early European session on Frid ...Full Story»

Pound Little Changed After U.K. Public Sector Finance Data (11 hr(s), 32 min(s) ago)
(RTTNews) - At 4.30 am ET Friday, the Office for National Statistics has published public sector f ...Full Story»

Pound Mixed Ahead Of U.K. Public Sector Finance Data (11 hr(s), 38 min(s) ago)
(RTTNews) - At 4.30 am ET Friday, the Office for National Statistics publishes public sector finan ...Full Story»

Australian, NZ Dollars Advance Against Majors (12 hr(s), 44 min(s) ago)
(RTTNews) - The Australian and New Zealand dollars climbed against their most major counterparts i ...Full Story»

Search

FOREX NEWS

Dollar Trading Mixed Ahead Of The Weekend

10/19/2018 - 14:49 PM (RTTNews)
(RTTNews) - The dollar is turning in a mixed performance against its major rivals Friday afternoon ...Full Story>>

Loonie Weakens After Disappointing Canada Inflation, Retail Sales Data

10/19/2018 - 10:27 AM (RTTNews)
(RTTNews) - The Canadian dollar declined against its major counterparts in the European session on ...Full Story>>

Loonie Falls After Canada Retail Sales, CPI

10/19/2018 - 08:32 AM (RTTNews)
(RTTNews) - At 8:30 am ET Friday, Statistics Canada has released Canada retail sales for August an ...Full Story>>

Loonie Mixed Ahead Of Canada Retail Sales, CPI

10/19/2018 - 08:28 AM (RTTNews)
(RTTNews) - At 8:30 am ET Friday, Statistics Canada will release Canada retail sales for August an ...Full Story>>

Euro Weakens After EC Warns Italy Over Budget Plan

10/19/2018 - 05:41 AM (RTTNews)
(RTTNews) - The euro declined against its major counterparts in the early European session on Frid ...Full Story>>

Binary Options Articles Courtesy of NADEX

These pages, and all content ©TradingCharts.com Inc and other copyright holders. Permission is not granted to redistribute charts, data, news or other information found on this site, in any manner. Although it is believed that information provided is accurate, TradingCharts will not accept liability for any loss or damage that may arise from use of the content, inability to access the website, or delay or failure of receive of any information provided through this site.