Euro witnessed a sharp decline after the contraction signal

fell close to its lowest level in two weeks during the session Asian trading on Friday after the decline is expected in the inflation numbers, which led to the recovery of expectations that the European Central Bank may see that the road in front of him and clear for action to stimulate additional in order to give support to the Euro zone economy . According to the data, index of consumer inflation to its lowest level since 4 years at 0.7% last month, against expectations that the data will be flat at 1.1%, while inflation is essential, and that goes a plug-volatile, such as energy and food, fell to 0.8% . decline in the EUR / USD to $ 1.3538, which is the lowest level in two weeks, before returning to the $ 1.3554 level, still 0.3% lower through deliberative today, which adds to the sharp decline of 1.1%. There is a key support level at $ 1.3550, which is a 76.4% decline in the middle of the month of October move. The EUR / Japanese yen reached a new low during the two weeks at 132.985 yen.

Will the European Central Bank intervenes to stave off deflation?

One analyst pointed out from Tokyo to the significant decline to below 1% indicates that there is more that may come, where the outlook in Japan, at least in Japan is that when it imposes style deflation himself, be difficult to reverse. The feeling is that the ECB will probably referring strongly that it is ready to provide stimulus measures when he sees that the time is right.