The euro falls after US inflation data By EFE

Frankfurt (Germany), Oct 29 (.) .- The euro depreciated this Friday after the publication of US inflation figures and after having touched 1.17 dollars.

The euro was trading at around 3.30pm GMT at $ 1.1558, compared to $ 1.1681 in the last hours of the European currency market trading the previous day.

The European Central Bank (ECB) set the benchmark exchange rate for the euro at $ 1.1645.

Data from the US economy are an argument for the Federal Reserve (Fed) to begin reducing stimulus in November, thus increasing interest rates in the market and increasing the attractiveness of investments denominated in dollars.

The PCE price index for personal consumption expenditure, which the Fed takes into account when adjusting its monetary policy, shows that the pressure on prices continues after rising 4.4% year-on-year in September and 0.3% compared to the previous month.

Consumer confidence fell in October in the US due to rising inflation.

In the euro area, inflation rose to 4.1% in October, its highest in thirteen years, and the economy grew 2.2% in the third quarter compared to the previous quarter, driven by France and Italy.

The euro had previously touched $ 1.17 as ECB President Christine Lagarde failed to deflect expectations of rate hikes in 2022 and yield spreads between the euro area and the US narrowed.

“The lack of response from the president of the ECB gave the green light to the markets to raise the short-term yields of the euro zone at a time when US yields are falling after the decline in GDP in the third quarter,” consider the Monex Europe analysts.

The single currency was traded in a fluctuation band between $ 1.1560 and $ 1.1690.

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