BRUSSELS (Alliance News) - The euro turned in mixed against other major currencies in European deals on Monday after final data on Eurozone inflation in January, which remained unchanged from last month.
The revised figures released by Eurostat showed today that the harmonized index of consumer prices (HICP) rose 0.8% year-on-year in January, which was unchanged from the December growth rate. The preliminary estimates were for a 0.7% growth in January.
At the same time, core inflation, which excludes energy, food, alcohol and tobacco, rose to 0.8% from 0.7% in December, in line with the initial estimates.
Inflation has stayed below the European Central Bank's target of 'below, but close to 2%' for the twelfth consecutive month.
The survey data released by the Ifo institute showed that German business confidence strengthened unexpectedly in February to the highest level since July 2011 despite a drop in expectations.
The business confidence index climbed to 111.3 from 110.6 in January. The reading was expected to remain stable at 110.6.
The European Central Bank President Mario Draghi said after the G20 meeting in Sydney he is ready to act if the outlook for prices deteriorates, although he sees no fear of deflation in the euro area.
The ECB will have the full set of information needed to decide whether to act or not by its next rate-setting meeting on March 6. The bank will also release its inflation estimates for 2016 for the first time in March.
The euro advanced to 1.2204 against the franc when the data was released, off early near 3-week low of 1.2185. The next possible upside target for the euro lies around the 1.23 mark.
The euro retreated to 0.8249 against the pound, after advancing to 0.8286 in early deals, a nearly 2-week high. If the euro extends decline, it may eye support at the 0.81 zone.
The euro stabilised against the greenback, following a 5-day high of 1.3770 set after German Ifo business confidence index. The pair finished last week's deals at 1.3735.
The euro rebounded against the yen, trading around 140.83, up from an early low of 140.33. Further gains may lead the euro to test resistance around the 142.00 region.
