EUR USD analysis: Euro retreats below 1.3 as CPI data eyed

NEW YORK (Forex News Now) – The euro slid against the dollar on Wednesday, retreating below the 1.3 mark and pulling back from a 1-month high, as FX traders awaited consumer price inflation data from the euro zone.

In European morning currency market trading, EUR/USD hit 1.2974, down 0.19 percent on the day, after falling from Tuesday’s 1-month high of 1.3033.

Later in the day, the EU statistics agency was due to publish key monthly data on consumer price inflation in the euro zone. Eurostat, the bureau, was expected to say its consumer price index grew 1.6 percent year-on-year in August, two major realtime forex news outlets reported.

According to EUR USD analysis, EUR/USD was likely to touch support around Tuesday’s low, 1.2829, and encounter immediate resistance around Tuesday’s high, 1.3033.

Also Wednesday, the United States was set to publish a raft of important economic data: reports were due on manufacturing in New York state, import prices, industrial production, capacity utilization and crude oil inventories.

Elsewhere, the euro climbed versus sterling: EUR/GBP traded at 0.8385, up 0.25 percent, according to intraday analysis.