Euro Continues to Decline Ahead of European Inflation Data

The euro ended Thursday’s trading on a downward trend, affected by pressure from the rising US dollar and anticipation of eurozone inflation data, which is expected to shed more light on the European Central Bank’s future monetary policy path.

The EUR/USD pair fell to 1.0551 compared to the previous day’s close of 1.0565. The pair rose to its highest level on Thursday at 1.0569 and fell to its lowest at 1.0527.

The US dollar continues to seek further gains during the Thanksgiving holiday but has not been able to achieve significant increases due to lower liquidity levels in the markets during the US market closure.

The Dollar Index, which provides a clear picture of the US currency’s performance against a basket of major currencies, rose to 106.17 points compared to last Wednesday’s close of 106.08 points. The index fell to its lowest level during the current trading day at 106.10 points, compared to its highest level of 106.42 points.

Markets are awaiting eurozone inflation data, with expectations of an increase in the annual consumer price index reading for November compared to last month’s reading.