The latest flash inflation estimates for the eurozone for January matched expectations. Headline inflation rose by 1.3%, matching forecasts, while core CPI was also up 1.3% during the period ending January 2020.
However, the euro remained unimpressed by the big change in inflation. In a separate report, eurozone retail sales rose by 1.0%, beating estimates of a 0.6% increase.
EUR/USD Back to Lower Support
The declines in the common currency sent EURUSD back to the support area of 1.1131. This comes amid a failure to breakout above the resistance level. The formation of a lower high also suggests that the downside momentum is building. In the event of a breakout below 1.1131 support, we expect the euro to slip to 1.1100 level next.
