EUR/USD fell to the level of 1.1725.
The final data on consumer inflation in the Eurozone for August fully coincided with the preliminary ones. In annual terms, inflation increased by 3%. The base indicator strengthened by 1.6%. Inflation significantly exceeds the European Central Bank's target of 2%, but the regulator does not plan to tighten its monetary policy, considering the price increase a temporary phenomenon. After falling to the lowest level since 2011 in August, the indicator of consumer sentiment in the United States in early September improved moderately from 70.3 to 71 points. Analysts conclude from this that consumers are still pessimistic about the current situation. Despite the small increase, the rate is still lower than at any point during the pandemic. This remains a worrying indicator for the consumer outlook. Such a mood indicates weak spending. Retail sales in August were higher than expected, but the data mainly relate to the commodity sector and are not adjusted for price changes. Households maintain a stable financial position, taking into account the accumulated savings over the past year, but the rapid increase in consumer prices and the increase in the number of cases associated with the coronavirus will have a negative impact on spending in the short term.
The forecast expects a further decline in the euro/dollar exchange rate to the levels of 1.1700, 1.1680 and 1.1660.