The euro edged moderately lower against the dollar and stayed neutral against sterling on Tuesday, as downbeat data on German economic sentiment weighed in and American markets eagerly await for the Federal Reserve’s highly-anticipated policy statement due on Thursday. The euro struggled against the dollar, largely down to the ZEW economic sentiment index for Germany falling to 12.1 in September – dramatically down from August’s figure of 25.0 and against the forecast of 18.4 for this month.
Today inflation data will be released in the form of Consumer Price Index (CPI) figures. This forecast to improve from -0.6% back up to 0%. If this is the case it would be a huge boost for the euro after such a damaging figure previously.