EUR/USD falls on US inflation data, trading below 1.2600

By IBTimes Staff Reporter | February 20 2009 4:04 AM

FXstreet.com (Barcelona) - The Dollar has continued rising early American session on US CPI data and the EURUSD has fallen around 30 pips after the data release from 1.2613 to 1.2580.

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Currently the pair in trading below the 1.2600 level and it is looking for the 1.2565, as today's low.

U.S. CPI reading erases deflation fears. Today, January Consumer Price Index was posted at 0.3% on the monthly basis, as expected, and unchanged between December and January, better than expected. January Core CPI was posted 0.2% better than 0.1% increases expected by markets and 0.0% in December. Annual Core inflation decline slightly to 1.7% in January from 1.8% in December, but it was better than 1.5% YoY inflation expected by market.