LONDON
\nThe euro was on track for its biggest one-day drop since September as German inflation eased in December, while the dollar rose to a two-week high with focus turning to the Federal Reserve\u2019s minutes from the December meeting.
\nThe euro was last down around 1.3% against the dollar at $1.0526, its lowest level since Dec. 12 and on track for its biggest daily fall since Sept. 23 last year.
\nGerman state inflation data showed an easing of price pressures in December, indicating national inflation may also have slowed for a second month due in part to the government\u2019s one-off payment of household energy bills.
\n\u201cThe EUR is under-performing somewhat on the session, with the weaker than expected data likely weighing on sentiment,\u201d said Scotiabank chief currency strategist Shaun Osborne in a note.
\n\u201cNear-term, corrective EUR losses could extend to the 1.03\/1.04 region before renewed buying pressure develops,\u201d Osborne added.
\nHe noted that the German inflation figures would unlikely deter the ECB from pursuing a relatively aggressive tightening policy in the next few months.
\nPreliminary pan-German December data is due at 1300 GMT.
\nInvestor attention this week is also on the Fed\u2019s December meeting minutes scheduled for release on Wednesday, with traders looking for clues to what rate path is likely to be taken.
\nThe U.S. central bank raised interest rates by 50 basis points last month after delivering four consecutive 75-basis point hikes, but has said it may need to keep interest rates higher for longer to tame inflation.
\n\u201cThe Fed was hawkish but the market didn\u2019t buy into it,\u201d said Nordea chief analyst Niels Christensen.
\n\u201cThe market is pricing in cuts towards the end of this year and that\u2019s not the message from the Fed as we see it,\u201d Christensen added.<\/p>\n","protected":false},"excerpt":{"rendered":"
LONDON The euro was on track for its biggest one-day drop since September as German inflation eased in December, while the dollar rose to a two-week high with focus turning to the Federal Reserve\u2019s minutes from the December meeting. The euro was last down around 1.3% against the dollar at $1.0526, its lowest level since […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-305421","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n