Euro is pulling back today after reaching the 1.36 level against the US dollar. The 17-nation currency got a boost earlier, but has since settled back as more traders consider the situation.
Euro got a boost from the most recent ECB announcement yesterday, as well as help against the US dollar as the impasse over government funding continues. However, some feel that the greenback might have been oversold against the euro anyway, and various issues are sending the euro a little bit lower.
The latest factory data report shows that factory prices were flat in August. Eurostat indicates that, rather than logging a rise from July to August, factory prices were flat. The news indicates that inflation is slowing, and that means that the economic recovery is still rather questionable.
Also not helping are concerns about Portugal. While Italy managed to clear its latest crisis, there are questions about Portugal as it attempts to leave the bailout program. There are enough uncertainties for the eurozone right now that this is leading to a bit of backtracking against the dollar.
At 14:50 GMT EUR/USD has slipped to 1.3596 from the open at 1.3619. EUR/GBP is up to 0.8450 from the open at 0.8429. EUR/JPY is down to 132.0945 from the open at 132.4605.
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