The Euro retreated a little bit. Overview for 17.01.2018

On Wednesday, the main currency pair is under slight pressure, but sellers are very careful.

The EUR/USD pair continues falling slowly. The current quote for the instrument is 1.2230.

The statistics published by the Eurozone this afternoon showed that the Inflation Rate increased up to 1.4% y/y in December, which is the same as expected=, but worse than the November reading. The Core Inflation Rate remained unchanged, at 0.9% y/y.

So, the inflation in the Eurozone did slow down a bit in December and it’s not the best news for those who believe that the European Central Bank may close the QE program sooner than expected. According to the Eurostat, energy prices dropped significantly, and prices for food and some excise goods are also decreasing.

The ECB itself emphasized on several occasions that it wasn’t going to slow down the QE program, because it really revived the European economy. However, investors did find in the latest Policy Meeting Minutes report some hints and indications that the program might be closed earlier if the economic situation allows.

The inflation slowdown can barely scare anybody, because it’s a monthly report, which is not very global. However, if it becomes a tendency, speculations about the QE program closing will die out very soon.

RoboForex Analytical Department