Euro Loses Ground on Inflation Report

Euro is losing ground from earlier, thanks in large part to the latest inflation report, which was downwardly revised for January. After the release of the new information, the 19-nation currency is struggling.

The latest year over year inflation reading for the eurozone was downwardly revised from 0.4 per cent to 0.3 per cent for January. Even with this disappointment, though, it looks as though there is still some acceleration, since the year over year number for December was 0.2 per cent.

After the release of the data, the euro began losing ground against many of its counterparts. The 19-nation currency saw some gains earlier, but some of those, especially against the US dollar, are being erased. The expectation that the European Central Bank will have to do something to help the economy has many wondering what will be next for the euro.

At 14:56 GMT EUR/USD has fallen to 1.1005 from the open at 1.1007, and from the high of 1.1046. EUR/GBP is higher, up to 0.7908 from the open at 0.7901, but that is still down from the earlier higher of 0.7930. EUR/JPY is up to 124.1650 from the open at 123.2210, and down from the high of 124.3150.

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