Euro flattens out near 1.2 versus dollar

Euro tilted higher in American trade against the dollar, moving farther away from the lowest since late August for the fifth straight session, following a spate of data from the euro zone and the US, while the Federal Open Market Committee's policy meeting draws to an end in Washington. 

As of 03:26 GMT, EUR/USD rose 0.03% to 1.1998 from the opening of 1.1994, with an intraday low at 1.1987, and the highest since September 11 at 1.2022. 

Earlier German data showed producer prices rose 0.2% in August, same as before and beating expectations of a 0.1% rise, while on a yearly basis, prices accelerated to 2.6% from 2.3%, passing forecasts of 2.5%. 

Similarly, European Central Bank officials pointed that inflation will definitely rise to the ECB's target, and expounding that euro zone policies need to be restructured, while euro's strength reflect strong economic conditions and growth outlook. 

The German government spokesperson said that there was no official offer so far from the British government regarding its Brexit bill, which was a response to reports that UK Prime Minister offered to pay 20 billion euros as a Brexit bill, while otherwise, markets look forward to ECB president Mario Draghi's speech tomorrow in Frankfort. 

Otherwise, earlier US data showed existing home sales slid 1.7% in August to an annualized 5.35 million units, compared to July's 1.3% drop to 5.44M, while analysts expected a 0.2% increase to 5.46M. 

Investors look forward to policy decisions by Federal Open Market Committee members in this week's periodic meeting, at which policymakers are expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates. 

Fed policymakers are expected to start the process of trimming down the Federal Reserve's $4.2 trillion holdings of treasury bonds and mortgage-backed securities, while maintaining overnight interest rates at between 1% and 1.25%.