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Euro holds near 16-month low against dollar after faster inflation print

Eurozone September HICP inflation quickened to 3.8% year over year, and core HICP rose to 2.5%.

Reported · Written up by our desk · Major Pairs

The euro was practically flat versus the US dollar on Friday, with EUR/USD trading in the mid-1.1200s, close to the 16-month low of 1.1210 reached on Thursday, according to FXStreet.

FXStreet said September’s preliminary Harmonised Index of Consumer Prices showed inflation accelerated to 3.8% year over year from 3.2% in August, topping expectations of 3.6%, while core HICP rose to 2.5% from 2.4%.

The inflation data added pressure on the European Central Bank to tighten monetary policy further, but FXStreet reported that high oil prices and concerns about France’s fiscal health were deterring euro buyers.

FXStreet also noted that Brent crude retreated below $100 on reports of sharp increases in Gulf supplies in September, while crude remains more than 30% higher over the last three months and is seen as a risk for Eurozone economies.

Latest closeWTI crude $90.46 ▲1.2%|Brent $98.07 ▼4.4%|EUR/USD 1.133 ▼0.3%

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