The European single currency was in a side move against the US Dollar on the bloc’s inflation report, which came in in line with forecasts. The EUR/USD rose 8 base points to weaken bearish trend.
The inflation growth in the Euro zone weakened in line with expectations in December, justifying the ECB decision to maintain its monetary policy accommodative, despite higher pressure from Germany and other leading economies. The European Central Bank stated that it would keep buying bonds until September and maintain key interest rate low to strengthen inflation growth to 2% target. Prices in the area increased just 1.4% year-over-year in December, which was by 10 base points weaker than in the prior month due to slow energy and food prices growth.
