The euro fell during today's trading and is on its way to record the second biggest weekly loss over the past four months, a week before important European policy events. The Italian general elections are scheduled for March 4, and members of the German Social Democratic Party vote results on joining the conservative Merkel alliance will be released on the same day.
The EURUSD slipped from a weekly high of 1.2434 to currently trade at 1.23 after hitting its daily low of 1.2279 before the Eurozone inflation data released, with the consumer price index slowing slightly to 1.3% in January.
On the other hand, the yen rose against the US dollar after Japan's annual core inflation rate was unchanged from the previous month but was better than expected, reinforcing the view that the Bank of Japan is still far from the idea of exiting from its monetary easing policy. USDJPY fell from its daily high of 107.12 to currently trade at 106.70.
On the other hand, oil prices fell to levels of $ 66 a barrel during the day under pressure from concerns of rising US output and exports will offset OPEC's attempts to reduce stocks with restrictions on production.
Markets are waiting for inflation data from Canada, and consumer price index is expected to slow to 1.4% in January from the previous reading of 1.9%, which will be important for the direction of the Canadian dollar.
