Inflation Still 0.2%, Euro Perched In Level 1.1200

The euro held near the key level of 1.1200 per dollar accompanied the increase in euro zone inflation stable in August. The initial estimate of the Consumer Price Index (CPI) Euro zone is still up 0.2% last month compared to a year earlier, but better than the 0.1% increase forecast by economists polled by Reuters. The inflation rate remained close to the average forecast of the European Central Bank, which amounted to 0.3% for this year and projected to rise to 1.5% next year. Low oil prices become a major burden which limits the increase in the index, with energy prices fell 7.1% in August compared to a year ago.

Before the inflation data, the level of German retail sales reported growth of 1.4% in July. Better data from a report in July when retail sales of Euro's largest economy fell 1%. However, the Euro exchange rate remains moved lower against the US Dollar in the European session, although still higher by around 0.1% compared to the closing level of the previous session.