German Regional Inflation Pulled the Euro Down

Change in market sentiment after a regional inflation in Germany pulling the Euro currency back to lows for nine successive days against the U.S. dollar. The greenback is still trying to recover after being on the lows because of the issue concerning healthcare. Yet, it increased by 2.0 percent against the Euro trading at $1.0737 following a drop in annual inflation from 2.4 percent last month to 1.8 percent as specified by the German state Saxony.

It is still below the 2 percent target of the European Central Bank and this raises worries for ECB officials with the current market sentiment towards tighter monetary policies and higher Eurozone interest rates with plans for a rate hike early next year. They are also anxious about the April meeting to ensure “easy money policy” continues.