Slowing inflation hits the dollar, but not the euro

Expert market comment from senior analyst Alex Kuptsikevich of the FxPro Analyst Team: Slowing inflation hits the dollar, but not the euro
FxPro | 702 days ago

The German Producer Price Index was weaker than expected in October, falling 0.1% over the month. The year-on-year rate of decline slowed to 11% in October from a trough of 14.7% in September. A similar reversal was seen in import prices in August-September.

Wholesale and producer price indices lost ground last month, which has the potential to keep consumer prices from rising later in the year.

But here's the interesting thing: the markets are actively betting on weak US inflation, suggesting that rates have peaked, causing the dollar to weaken against its rivals. But equally weak data in Europe, also supported by signs of economic weakness and the Bundesbank's forecast of a shrinking economy until 2024, is not stopping the Euro from rising.

Technically, the EURUSD looks overbought in the short term, but for buyers, the fact that it managed to close above its 200-day average last week looks like another attempt to return to a bullish trend.

By the FxPro Analyst team

FxPro
Type: NDD
Regulation: FCA (UK), SCB (The Bahamas)
read more
Inflation in Focus as Traders Eye BoE’s Next Move | 22nd October 2025

Inflation in Focus as Traders Eye BoE’s Next Move | 22nd October 2025

Markets traded cautiously as investors awaited UK inflation data, a key driver for the Bank of England’s next move. The Pound held firm ahead of CPI, oil extended gains on improving demand, and the US Dollar stayed soft. Broader sentiment was steady as easing US–China trade tensions balanced inflation-driven uncertainty.
Moneta Markets | 18h 27min ago
ATFX Market Outlook 22nd October 2025

ATFX Market Outlook 22nd October 2025

The U.S. Dollar Index climbed to a six-day high, buoyed indirectly by a weaker yen. Markets reacted to the election of conservative Sanae Takaichi as Japan’s first female prime minister, with speculation that fiscal expansion under her leadership could cloud the country’s interest rate outlook.
ATFX | 20h 46min ago
EUR/USD Under Downward Pressure

EUR/USD Under Downward Pressure

The euro is facing sustained selling pressure, primarily driven by a robust US dollar. The greenback is being bolstered by rising Treasury yields and fading market expectations for an early start to the Federal Reserve’s easing cycle.
RoboForex | 1 day ago
ATFX Market Outlook 21st October 2025

ATFX Market Outlook 21st October 2025

US equities surged on Monday, with financial and technology shares providing most of the upside. Optimistic quarterly earnings revived risk appetite, while concerns about regional banks’ credit quality eased. The Dow gained 1.12%, the S&P 500 rose 1.07%, and the Nasdaq advanced 1.37%. The US Dollar Index edged higher alongside Treasury yields.
ATFX | 1 day ago
ATFX ​Market Outlook 16th October 2025

ATFX ​Market Outlook 16th October 2025

The Federal Reserve’s Beige Book showed little change in recent U.S. economic activity, but signs of cooling consumption emerged. Morgan Stanley and Bank of America gained on strong quarterly earnings, while investors remained focused on escalating U.S.-China trade tensions. The Dow fell 0.04%, the S&P 500 rose 0.4%, and the Nasdaq advanced 0.66%.
ATFX | 6 days ago
Fed’s Dovish Tone Weakens Dollar, Lifts Majors | 15th October 2025

Fed’s Dovish Tone Weakens Dollar, Lifts Majors | 15th October 2025

The US Dollar weakened after Fed Chair Powell’s dovish remarks fueled expectations of a year-end rate cut, lifting major currencies and risk sentiment. Oil stayed subdued near $58 amid oversupply worries, while GBP/USD, EUR/USD, and AUD/USD gained. Traders await key US data and FOMC minutes for policy confirmation.
Moneta Markets | 7 days ago
ATFX Market Outlook 15th October 2025

ATFX Market Outlook 15th October 2025

U.S. stocks closed mixed on Tuesday as investors digested mostly upbeat quarterly earnings from major banks, Fed Chair Jerome Powell’s remarks, and persistent trade tensions. Powell noted that while the economy remains resilient, risks linger.
ATFX | 7 days ago
ATFX ​Market Outlook 14th October 2025

ATFX ​Market Outlook 14th October 2025

U.S. equities closed sharply higher on Monday, led by Broadcom and other chipmakers, after President Trump issued reassuring remarks to ease renewed U.S.-China trade tensions. The Dow rose 1.29%, the S&P 500 gained 1.56%, and the Nasdaq surged 2.2%. The U.S. Dollar Index also rebounded above the 99 mark as trade worries moderated.
ATFX | 9 days ago