Euro at fresh 9-year lows as EZ inflation turns negative
Data showing that consumer prices in the euro area fell in December for the first time in more than five years added to pressure on the European Central Bank to step up stimulus measures.
EUR/USD touched lows of 1.1842, the weakest level since February 2006, down from 1.1888 late Tuesday.
Statistical agency of European Union’s, The Eurostat reported that the annual rate of euro zone inflation fell by 0.2% in December, down from 0.3% in November. Economists had expected an annual decline of 0.1%. It was the first fall in the annual rate of inflation since October 2009.
Core inflation, which strips out volatile measures such as food and energy costs, rose 0.8% on a year-over-year basis, but was still well below the ECB’s target of close to, but just under 2%.
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