# Euro Retreats after Inflation Disappointment, Italian Budget Dilemma Cast Doubt over ECB Policy Outlook

> The euro fell after eurozone headline inflation rose to 2.1% in September while core inflation unexpectedly dropped to a five-month low of 0.9%. Concerns over the Italian budget also weighed on the currency, with EUR/USD trading near 1.1558.

- Date: 2018-09-28 · published 2018-09-28T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/63249-euro-retreats-after-inflation-disappointment-italian-budget-dilemma-cast-doubt
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Weak core inflation and a softer euro dampen expectations for ECB tightening, supporting a stronger dollar that tends to pressure dollar-priced grain and meal markets.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2018-08-31 | [Euro Slips after Inflation Disappointment, White House Trade Threats, as Analysts Warn of Losses Ahead](https://feedsoft.ai/events/63736-euro-slips-after-inflation-disappointment-white-house-trade-threats-as-analysts.md) | -0.6% | -0.2% |
| EURUSD | 2018-11-30 | [Euro Exchange Rate: Inflation Disappointment Threatens to Turn ECB Headache into a Migraine](https://feedsoft.ai/events/62239-euro-exchange-rate-inflation-disappointment-threatens-to-turn-ecb-headache-into.md) | +0.1% | -0.2% |
| EURUSD | 2018-09-27 | [Dollar rises on Fed rate outlook; euro falls on Italian budget woes](https://feedsoft.ai/events/63247-dollar-rises-on-fed-rate-outlook-euro-falls-on-italian-budget-woes.md) | -2.0% | -3.3% |
| EURUSD | 2022-09-30 | [Euro Outlook: Double-digit Eurozone Inflation to Offer Scant Support](https://feedsoft.ai/events/39803-euro-outlook-double-digit-eurozone-inflation-to-offer-scant-support.md) | +0.3% | +1.6% |
| EURUSD | 2018-11-08 | [Euro dips after EU cuts Italian outlook; dollar up before Fed meeting \| Gold Eagle](https://feedsoft.ai/events/62244-euro-dips-after-eu-cuts-italian-outlook-dollar-up-before-fed-meeting-gold-eagle.md) | -1.2% | -0.8% |
| DXY | 2018-08-31 | [Euro Slips after Inflation Disappointment, White House Trade Threats, as Analysts Warn of Losses Ahead](https://feedsoft.ai/events/63736-euro-slips-after-inflation-disappointment-white-house-trade-threats-as-analysts.md) | +0.4% | -0.2% |
| DXY | 2018-09-27 | [Dollar rises on Fed rate outlook; euro falls on Italian budget woes](https://feedsoft.ai/events/63247-dollar-rises-on-fed-rate-outlook-euro-falls-on-italian-budget-woes.md) | +0.4% | +1.6% |
| DXY | 2018-11-08 | [Euro dips after EU cuts Italian outlook; dollar up before Fed meeting \| Gold Eagle](https://feedsoft.ai/events/62244-euro-dips-after-eu-cuts-italian-outlook-dollar-up-before-fed-meeting-gold-eagle.md) | +1.0% | +1.2% |

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/eurusd/10004-the-euro-today-eurozone-inflation-data-in-focus

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.