EUR/USD 30 minutes
Euro was off Thursday's SNB-driven lows, but Friday's CPI data has pulled it back near the previous day's 11-year lowIBTimes UK/FXStreet

Euro fell back near Thursday's lows as December inflation data from Eurozone came lower than expected underpinning expectations of additional stimulus by the European Central Bank at the 22 January meeting.

EUR/USD fell to 1.1579 from the previous close of 1.1618. The pair had touched a 11-year low of 1.1567 on Thursday following the Swiss National Bank's decision to scrap the EUR/CHF floor that weakened the common currency broadly.

Eurozone core inflation was 0.7% year over year in December, unchanged from the previous reading and compared to market consensus of 0.8%. The headline rate is -0.2% from 0.3%, indicating the depth of deflation in the region.

Final reading of German inflation data released earlier in the day showed disinflation continued in the largest Eurozone economy. The year-on-year rate stood at 0.2% from 0.6% in November.

The ECB is widely expected to announce additional bond buying in the upcoming policy review, which has already deepened EU-US divergence with the Federal Reserve on track to start hiking rates this year itself.

At the low on Thursday, the euro was down 4.4% so far in January adding to the 12.7% drop during the eight months through December. Despite the gains in the first four months, the EUR/USD ended 2014 down 12% thanks to the sharp losses in the later part of the year.

The market is now waiting for the US inflation data, scheduled for 13:30 GMT. The headline inflation rate is expected to ease to 0.7% in December from 1.3% in the previous month. The core inflation rate is seen steady at 1.7%.