Euro at $1.1245, below previous day's high... Eurozone inflation at 4.0%

The euro traded around $1.1245 on November 5, slipping below the prior day's high, as Eurostat's preliminary October HICP estimate showed eurozone inflation accelerating to 4.0% year-over-year from 3.8% in September. Energy prices drove the increase, rising 20.8% versus 18.9% the prior month, while core inflation excluding energy, food, alcohol and tobacco held at 2.5%. The stronger headline print matters because it keeps pressure on the European Central Bank to tighten policy even as growth risks mount. Traders will watch ECB commentary and incoming inflation data for signals on the pace of rate normalization, with the euro's reaction around the $1.12 handle likely to hinge on policy guidance.