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Forex pairs in this Article » EUR/USD (London) - The euro has continued to slide today, driven down by increased expectations of an interest rate cut at the December ECB meeting.

Speculation of a potential cut was fuelled by yesterday’s sharp drop in inflation numbers as well as continuing high Eurozone joblessness numbers.

Eurozone inflation for the year to September printed at 0.7 percent, according to Eurostat. The figure represented a sharp drop on consensus expectations of 1.1 percent.

Price inflation continues to be weighed by the Eurozone’s unemployment problems. Eurostat revised up previously optimistic labour market reports from 12 percent to 12.2 percent, unchanged fro September.

EUR/USD has declined 0.5 percent so far today to USD1.3517. The price has declined steadily from the Monday open of USD1.3809 and could be set for the largest weekly decline since February.

The pair had been driven up in the weeks previously thank to expectations that the Fed would delay any tapering of its USD85bn a month asset purchase programme until at least its March meeting due to weak job growth and consumer confidence knocked by the first US government shutdown in 17 years.
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