FXStreet reported EUR/USD at $1.1155 at 07:30:52 GMT on Wednesday, Nov. 11, after the pair retreated from Tuesday’s highs just above $1.1250. The outlet said the euro had fallen for a second consecutive day and attributed the dollar’s strength to U.S. inflation data and Federal Reserve officials’ comments.
Germany’s Federal Statistical Office (Destatis) confirmed that the harmonised consumer price index fell 0.1% from September to October and rose 2.8% from a year earlier. In September, the index had risen 0.6% month over month and 3.3% year over year. The final figures matched the preliminary October estimate.
The national CPI also rose 2.8% year over year, while falling 0.2% from the previous month. Inflation excluding food and energy eased to 2.1% from 2.4% in each of the preceding three months. Energy remained a source of pressure: energy product prices were 12.2% higher than a year earlier, although Destatis said a fuel discount introduced on Oct. 1 likely dampened the increase.
Across the Atlantic, the U.S. Bureau of Labor Statistics said October’s seasonally adjusted CPI gain was 0.4%; September’s increase was 0.6%. The core index, which excludes food and energy, rose 0.3%. The agency could not publish year-over-year changes for October indexes where the prior-year data were unavailable after a lapse in appropriations disrupted data collection.
Fed officials’ remarks added to the policy backdrop. Philadelphia Fed President and CEO Anna Paulson said further gradual tightening was appropriate, while Dallas Fed President Lorie Logan said she saw a need for at least two more 25-basis-point rate increases. Both officials’ pages date their remarks Nov. 10.
The Fed’s next scheduled meeting is Dec. 8-9. The BLS has scheduled its November CPI report for Dec. 10 at 8:30 a.m. Eastern Time.
