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EUR/USD drops below 1.2500 for first time in 2 years

FXStreet (Córdoba) - EUR/USD extended its decline and briefly dropped below the 1.2500 level to hit a 26-month low, as the dollar picks up steam across the board, helped by USD/JPY impressive gains and solid US data.

EUR/USD bottomed out at 1.2485 but sellers failed to keep the pair below the psychological level for long, with the euro climbing back to the 1.2515 area soon after. At time of writing, EUR/USD is trading at 1.2505, recording a 0.85% loss on the day.

The euro is headed to post its second weekly loss in a row against the dollar, while it remains on track for its fourth monthly decline.


On the data front, Eurozone CPI came in line with expectations at an annual rate of 0.4% in October, but well below the ECB target. Meanwhile, US Chicago PMI (66.2 vs 60.0) and Reuters/Michigan gauge of consumer confidence (86.9 vs 86.4) showed improvements in October. On the other hand, personal spending fell in September for the first time since the start of the year.

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