Forex – Euro Hits Day’s Lows against Sterling after EZ Data


© Reuters.  Euro hits day’s lows against sterling after euro zone data© Reuters. Euro hits day’s lows against sterling after euro zone data – The euro slid to the day’s lows against the pound on Tuesday after data showing that euro zone inflation slowed this month reinforced the case for the European Central Bank to withdraw stimulus only gradually.

EUR/GBP was down 0.22% at 0.8802 by 06:30 AM ET (10:30 AM GMT) from around 0.8815 earlier.

Eurostat reported that the preliminary reading of the consumer price index rose at an annual rate of 1.4% in October, down from 1.5% in September.

Economists had expected an inflation to remain steady at 1.5%.

The ECB targets inflation of close to, but just below, 2%.

Core inflation, which excludes energy and food prices and is closely watched by the ECB, dropped to a five month low of 0.9%.

A separate report showed that the euro are economy posted its fastest annual growth rate since the beginning of the debt crisis in the third quarter, boosted in part by strong growth in France.

The euro zone economy grew at an annual rate of 2.5% in the three months to September.

The euro area economy grew 0.6% in the third quarter, while growth in the second quarter was revised higher.

At the same time, another report by Eurostat showed that the unemployment rate in the region fell to 8.9% in September from 9.0% the previous month. It was the lowest reading since early 2009.

The euro remained lower against the dollar, with EUR/USD last at 1.1633, little changed from ahead of the data. The euro was steady against the yen, with EUR/JPY at 131.85.

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