Andrew
The euro’s losses deepened on Friday, retracing nearly half of its gains in the previous session, as eurozone inflation shot past expectations this month to equal its all-time high, creating a policy dilemma for the European Central Bank.
The single currency, which has broadly struggled against its rivals, on Friday slipped to more than one-year lows against the Swiss franc as Italian bond yields resumed their upward march a day after the
European Central Bank struck a dovish note at a policy meeting.
President Christine Lagarde’s failure to push back against market expectations of higher interest rates has brought out the bears, with Danske Bank strategists expecting the euro to fall to US$1,10 over the next 12 months, saying “if inflation proves longer-lasting, the comments today makes us less confident that ECB would not change policy rates eventually”.
Data on Friday showed inflation in the 19 countries sharing the euro rose to 4,1 percent in October from 3,4 percent a month earlier, beating a consensus forecast of 3,7 percent. — Reuters.
Online Reporter