Investing.com - The euro fell to fresh session lows against the dollar and the yen on Thursday after weaker than expected euro zone data on inflation and employment indicated that the recovery in the region remains sluggish.
EUR/USD hit 1.3663 during European morning trade, the lowest since October 21; the pair subsequently consolidated at 1.3665, shedding 0.51%.
The pair was likely to find support at 1.3600 and resistance at 1.3737, the session high.
The euro slid after Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September. Economists had expected the rate of inflation to remain unchanged.
The rate is further below the European Central Bank's target of near but just below 2%.
A separate report showed that the euro zone unemployment rate remained unchanged at a record high 12.2% in September, compared to expectations for a decline to 12%.
Earlier Thursday data showed that German retail sales fell unexpectedly for a second month in September, down 0.4% on a monthly basis. Economists had expected a 0.4% rise.
Demand for the dollar continued to be underpinned after the Federal Reserve was less pessimistic than anticipated in its assessment of the economy, fuelling speculation that it could start scaling back stimulus sooner than expected.
The Fed left its USD85 billion-a-month asset purchase program in place following its monthly meeting on Wednesday. The bank gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.
The euro was sharply lower against the yen, with EUR/JPY dropping 0.85% to 134.20.
The Bank of Japan made no changes to its stimulus program on Thursday and reiterated that inflation will be close to reaching the bank’s 2% target by April 2015.
Elsewhere, the single currency was also lower against the pound, with EUR/GBP down 0.40% to 0.8529.
EUR/USD hit 1.3663 during European morning trade, the lowest since October 21; the pair subsequently consolidated at 1.3665, shedding 0.51%.
The pair was likely to find support at 1.3600 and resistance at 1.3737, the session high.
The euro slid after Eurostat said consumer price inflation in the currency bloc rose 0.7% in October, the slowest pace since November 2009, after rising 1.1% in September. Economists had expected the rate of inflation to remain unchanged.
The rate is further below the European Central Bank's target of near but just below 2%.
A separate report showed that the euro zone unemployment rate remained unchanged at a record high 12.2% in September, compared to expectations for a decline to 12%.
Earlier Thursday data showed that German retail sales fell unexpectedly for a second month in September, down 0.4% on a monthly basis. Economists had expected a 0.4% rise.
Demand for the dollar continued to be underpinned after the Federal Reserve was less pessimistic than anticipated in its assessment of the economy, fuelling speculation that it could start scaling back stimulus sooner than expected.
The Fed left its USD85 billion-a-month asset purchase program in place following its monthly meeting on Wednesday. The bank gave no clear indication whether it would start scaling back stimulus at the December meeting or continue it into the start of 2014.
"The housing sector has slowed somewhat in recent months," the Fed statement said. However, Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing.
The euro was sharply lower against the yen, with EUR/JPY dropping 0.85% to 134.20.
The Bank of Japan made no changes to its stimulus program on Thursday and reiterated that inflation will be close to reaching the bank’s 2% target by April 2015.
Elsewhere, the single currency was also lower against the pound, with EUR/GBP down 0.40% to 0.8529.