EUR: inflation falls again
EUR/USD fell to the new 2-year minimum approaching $1.2600 after the euro zone released flash inflation data for September. USD/CHF flew up to 0.9560.
The region’s headline inflation declined from 0.4% to 0.3% in line with expectations, while the core reading unexpectedly fell from 0.9% to 0.7%. As a result, the pressure on the ECB to ease policy will strengthen. This is EUR-negative.