EUR/USD: Falls to Crucial Support Level Before US Inflation Report

EUR/USD Continues to Decline Following Inflation Data

The EUR/USD currency pair extended its downward momentum this week, slipping to 1.1682 after reaching a peak of 1.1805 in December.

Inflation in Europe Meets ECB Goal

The decline in the euro was triggered by new figures from Eurostat, which revealed that inflation across the eurozone fell to the European Central Bank’s target in December. The headline Consumer Price Index (CPI) reached 2% for the first time since the summer months. Meanwhile, core inflation—which excludes the more unpredictable food and energy sectors—held steady at 2.2% for the month. The drop in energy prices contributed to this moderation in inflation.