2023.03.0212:40:00UTC+00Euro In Negative Territory Amid Eurozone Inflation Data

The euro was lower against its major counterparts in the European session on Thursday, as Eurozone inflation eased in February, in a sign that price pressures are receding amid the European Central Bank's monetary policy tightening.

Flash data from Eurostat showed that headline inflation fell to 8.5 percent in February from 8.6 percent in the previous month. Economists had forecast a rate of 8.2 percent.

Nonetheless, core inflation rose to 5.6 percent from 5.3 percent in January. Economists had forecast an increase of 5.3 percent.

Separate data showed that the euro area unemployment rate remained unchanged at 6.7 percent in January. This was down from 6.9 percent in the same period last year.

The number of unemployed decreased 220,000 from the last year to 11.288 million in January.

The euro declined to 1.0613 against the greenback and 1.4452 against the loonie, off its early highs of 1.0672 and 1.4509, respectively. The euro may find support around 1.05 against the greenback and 1.42 against the loonie.

The euro weakened to 0.9990 against the franc and 144.92 against the yen, after climbing to more than a 4-week high of 1.0041 and more than a 2-month high of 145.56, respectively in early deals. The euro is seen finding support around 0.98 against the franc and 143.00 against the yen.

The euro retreated to 1.5764 against the aussie and 1.7063 against the kiwi, from its prior highs of 1.5825 and 1.7110, respectively. The euro is poised to test support around 1.55 against the aussie and 1.69 against the kiwi.

The euro was down against the pound, at 0.8855. On the downside, 0.87 is possibly seen as its next support level.