The latest flash inflation estimates for the eurozone showed a decline from 1.0% in August to 0.9% in September. Economists forecast that inflation would rise 1.0% during the month.
The core CPI estimates, however, came inline with the median expectations of 1.0%. The decline in the headline CPI comes just after the ECB started its QE program.
EUR/USD Testing the Support Area
The currency pair managed to post a rebound from two-year lows. However, the euro is testing the support area of 1.0925 – 1.0944. A close above this level will confirm the upside. But resistance will be confirmed if the EURUSD fails to rise any higher. In the near term, the EURUSD will likely be confined to the short term range.
