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The euro traded little changed against the US dollar, after three days of declines, following a report that showed inflation in the euro zone remained steady in December.

Having reached a session high at 1.3628 at 09:30 GMT, EUR/USD traded little changed at 1.3604 at 12:39 GMT. Support was likely to be received at January 15th low, 1.3581, while resistance was to be encountered at January 15th high, 1.3674.

According to a report by Eurostat, the consumer price inflation in the euro zone rose by 0.3% in December, in line with analysts expectations and after a 0.1% drop in the preceding month. On year-over-year basis, the CPI increased by 0.8% in December, unchanged from Novembers preliminary estimates and in line with analysts projections.

The data showed that the rate still remains well below ECBs target of 2% rate of inflation.

The monthly bulletin of the ECB released earlier in the day, largely reflected the statement by its President Mario Draghi, following central banks decision to lower interest rates in November. In its bulletin ECB reiterated that it will stick to monetary policy of low interest rates until it is needed. The central bank also expected interest rates to remain at these historically low levels for a prolonged period of time and the inflation rate to remain weak in the coming months.

Meanwhile, the Bureau of Labor Statistics, part of the Department of Labor in the United States, reported on Wednesday that nation’s PPI surged to an annualized 1.2% in December, after the index reached 0.7% in November. Analysts had expected the PPI will rise to 1.1%. On a monthly basis, the PPI increased 0.4% in December, the largest increase since June and in line with analysts’ forecasts. The index dipped 0.1% in the preceding month.

A separate report showed that a gauge, which tracks manufacturing activity in the region of New York, soared to a reading of 12.1 in January, or the strongest level since May 2012, which was also more than three times larger than the initially projected reading. According to the median estimate of experts, the index should have increased to 3.5, after an upward revision to 2.22 in the previous month.

These data points provided support to greenback’s demand, as it favored the view that the Federal Reserve Bank may continue tapering during the year. Central bank’s policy makers said on December 18th that they will reduce monthly asset purchases to $75 billion from $85 billion, underscoring improving labor market conditions.

The bank will probably continue to pare stimulus by $10 billion at each policy meeting before exiting the program in December, according to a Bloomberg News survey of 41 economists, conducted on January 10th.

In addition, Fed President for Philadelphia Charles Plosser and Fed President for Dallas Richard Fisher, voting members of the Federal Open Market Committee this year, yesterday called for continued reduction of the Fed’s bond-buying program. Fisher said that he would strive to eliminate the program entirely “at the earliest practicable date”, while his colleague said he would prefer the stimulus program to be ended before late 2014.

The Federal Open Market Committee is scheduled to meet next on January 28-29.

Investors awaited the release of the number of initial jobless claims for the week ended January 11th. The report may show initial jobless claims declined to 328 000, the lowest level since November. A separate report, based on a survey, may reveal the Philadelphia Feds general index increased to 8.7 in January, after a downward revision to 6.4 in the previous month. Higher-than-expected readings will certainly provide support to the greenbacks demand.

Elsewhere, having reached a session high at 104.92 at 03:30 GMT, USD/JPY traded at 104.75 at 09:18 GMT, adding 0.16% for the day. Support was likely to be received at January 15th low, 104.09, while resistance was to be met at January 10th high, 105.31.

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