EUR/USD finds a new year-long low as Euro continues to corrode

EUR/USD slipped below 1.0600 on Wednesday, heading into 1.0550.

A brief recovery off the back of US CPI inflation is unlikely to hold.

Euro is set to close in the red against the Greenback for a fourth straight day.

EUR/USD continued to backslide on Wednesday, falling into 1.0550 and finding only a meager bounce from 54-week lows after US Consumer Price Index (CPI) inflation for October printed closely to median market forecasts. The Euro continues to shed fans as market participants struggle to find reasons to bid Fiber, leaving EUR/USD at the mercy of broad-market US Dollar flows.

US CPI inflation for October came in broadly as-expected on Wednesday, however final figures failed to make any progress toward cooling targets, and key annual measures accelerated on a yearly basis. US CPI rose 0.2% MoM in October, in-line with the previous month’s inflation print, while ‘supercore’ CPI for the year ended in October rose 4.37% YoY compared to the previous period’s print of 4.26%.

The US Dollar eased slightly post-CPI, giving Fiber a chance to recover its stance from year-long lows, however momentum remains thin as global markets broadly focus on US labor figures to spark further rates cuts from the Federal Reserve (Fed).