EUR/USD drops on Friday despite US data, ends week higher

The euro was unable to hold to gains on Friday against the US dollar and dropped during the American session despite US data. Near the end of the week, EUR/USD was up 80 pips from the level it had seven days ago, steady above 1.1800.

US data weakens USD but not enough 

Friday’s data showed a rise in US retail sales and CPI but with readings below expectations. The inflation print triggered a decline of the US Dollar across the board. EUR/USD jumped from 1.1805 to 1.1874 but then turned to the downside, moving again toward 1.1800. 

US CPI: Inflation looked anemic, hurricanes aside  - Wells Fargo

It was about to end the week hovering around 1.1815/20, down for the second day in a row but positive for the week. It is the first gain after falling during the previous four weeks The minutes of the FOMC meeting released on Wednesday and some profit taking could have weakened the USD over the week. 

Week Ahead 

After a busy week, the next one looks thin regarding economic reports. In the US, the most important data will be industrial production for September, to be released on Tuesday. Also, traders will keep an eye on  FOMC members. Yellen will open the week on Sunday. 

In the Eurozone, final inflation numbers for September will be released on Tuesday, but no change is expected from the preliminary reading.  “However, it will be interesting to see which components caused the fall in service price inflation and whether they point towards any sustained upwards or downwards trend in core inflation, which will be important for ECB policy normalisation going forward”, said analysts at Danske Bank. The next ECB meeting is October 26. 

Bundesbank's Weidmann: Path of ECB bond buying programme depends on price outlook 

ECB's Draghi: A very substantial degree of monetary accommodation is still needed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.