Euro drops to dollar ahead of release of statistics on inflation in eurozone

The euro exchange rate against the dollar fell on Thursday morning, as markets are awaiting the data on inflation in the euro zone, while continuing to assess the prospects for the Fed's monetary policy.

Reported from the auction data, that the euro exchange rate against the dollar fell to $1.0377 from the previous closing level of $1.0392, the dollar against the yen rose to 139.56 yen from 139.55 yen. And the dollar index (the exchange rate against a basket of currencies of six US trading partners) increased by 0.28% to 106.58 points.

The final estimate of inflation in the euro area in October will be released later in the day. Markets expect the full-year rate to be confirmed at a record preliminary estimate of 10.7%.

At the same time, investors continue to assess the Fed's further actions on the rate. According to CME Group, 85% of analysts predict a 50 bps increase in December to 4.25-4.5% per annum. Experts expect a slowdown in the pace of rate increases after several increases of 75 basis points in a row.

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