The EUR/USD pair is undergoing a correction after a recent surge.
The primary currency pair is adjusting its position on Thursday, with the EUR/USD exchange rate currently at 1.0832.
Industrial production in the eurozone for September showed a 1.1% month-on-month decrease, slightly weaker than anticipated (-0.9%). The previous month had witnessed a 0.6% rise. The logical inference is that the production sector, like other segments, is grappling with challenges posed by high prices in the region.
In the US, a significant set of statistics was presented yesterday. Notably, retail sales in October declined by 0.1% month-on-month, falling short of the anticipated 0.3% decrease and trailing the previous month's growth of 0.9%. The Producer Price Index for October came in at 1.3% year-on-year, below the forecasted 1.9% year-on-year.
The decline in the PPI wasn't unexpected, given the robust inflation report seen yesterday, setting the tone for subsequent price publications. Other facets of inflation releases may also signal a downturn. These trends are consequences of the US Fed's tight monetary policy and the restrained interest rate level.
An event of note in the Eurozone today is a speech by ECB governor Christine Lagarde. Meanwhile, the US is set to release an industrial production report and its components, along with the weekly unemployment claims report.
The dollar, having weathered initial stress, is now seeking stabilization.