Euro falls off 37-month peak versus dollar

Euro fell in American trade away from December 18, 2014 against the dollar, following a spate of data from the euro zone and the US, the world's largest economy. 

As of 04:13 GMT, EUR/USD fell 0.15% to 1.2242 from the opening of 1.2260, with an intraday low at 1.2197, and a 37-month high at 1.2323. 

Earlier euro zone data showed consumer prices slowed down to 1.4% in December from 1.5% in November, while core prices steadied up at 0.8% in line with expectations. 

European Central Bank Vice President Vítor Constâncio said in earlier remarks that the monetary policy will remain expansionary, noting that it's hard to predict the future of the policy, while cautioning from recent spikes in the euro exchange rate. 

Constâncio added that there's no need to change institutions currently as they work fine, while asserting that the ECB won't change the overall monetary policy for the time being, even if continued to trim down the assets purchase program in reaction to the developin economic situation. 

ECB member Ewald Nowotny also called for closer monitoring of the euro exchange rate, as the recent moves don't reflect economic conditions, which is a cause of concern/  

An European Central Bank official said earlier that euro zone inflation hasn't reached the ECB's 2% target yet, noting that all possibilities regarding monetary easing will be discussed after September. 

Markets are considering possible policy tightening by the European Central Bank in the January 25 meeting, especially after the latest ECB minutes showed confidence in achieving inflation and growth targets, which could lead to an earlier end to the 30 billion euros a month assets purchase program. 

Inversely, chances of a Fed rate hike in March fell after a spate of disappointing US inflation data, in turn the euro recently against the dollar. 

US President Donald Trump commented on the chances of closing the government in the US with no firm answer, noting that in case no deal was reached between the Democrats and the Republicans in Congress, the government would be shut from January 19. 

Earlier US data showed industrial production rose 0.9% in December, compared to a 0.1% dip in November, revised from a 0.2% increase, while analysts expected a 0.4% increase. 

The Capacity Utilization Rate rose to 77.9% in December from 77.2% in November, revised from 77.1%, while analysts expected 77.3%. 

Now investors await the Beige Book, which derives its importance from the fact that it's issued two weeks before the Federal Open Market Committee, and upon which policymakers depend to make policy decisions.