Having been waiting since the beginning of the week, investors' questions were answered after the United States (US) inflation data was published recently which invited various reactions in the market.
The US consumer price index data for November recorded a lower reading than the previous month at 0.8% from 0.9%. The figure was however slightly higher than expected to decline to 0.7%.
The core inflation reading was in line with the forecast to decline to 0.5% slightly lower than the October record.
While the annual inflation reading rose to 6.8% as expected for November, higher than the 6.2% reading in October according to a report by the US Bureau of Labor Statistics.
Following the published data, the initial reaction of the market showed a depreciation of the value of the US dollar and then showed signs of strengthening again.
The dollar index also showed a decline following the publication of this focused data which influenced the movement of the king of the currency.
Analysts are likely to think investors acted to take advantage of previous US dollar buying positions before the data was published.
The price on the chart of the major EUR/USD pair showed a price surge from around $ 1.12700 to a high of around $ 1.13100 as of 10 pm, but the price was also seen to be pressed again to decline again.
Now the focus will be on the outcome of the Federal Reserve (Fed) policy meeting next week to assess inflation and plan action for the policy tightening measures announced earlier.
