Euro weakens for second consecutive day despite confirmation of easing inflation pressure in Germany

The euro fell against the U.S. dollar for a second straight session on November 11, failing to rally even after Germany's final consumer price index confirmed easing inflationary pressure. The euro's muted reaction came as U.S. data showed October CPI rose 0.4% month-over-month on a seasonally adjusted basis, with core CPI up 0.3%, though the Bureau of Labor Statistics withheld the annual rate because October 2024 data were not collected. Germany, the eurozone's largest economy, thus delivered a disinflation signal that proved insufficient to shift the currency's weakening trajectory. The divergence matters because it suggests markets are weighting U.S. price dynamics and rate expectations more heavily than euro-area disinflation. Next, watch whether eurozone inflation prints and European Central Bank commentary can reverse the euro's slide, and how markets digest the missing U.S. annual CPI figure.