Euro drops below 1.17 before the weekend

Euro tumbled in American trade against the dollar, following a spate of data and developments from the euro zone and the US, the world's largest economy, including the European Summit, and Spanish Prime Minister Mariano Rajoy's statements on the crisis in Catalonia. 

As of 04:44 GMT, EUR/USD fell 0.71% to 1.1768 from the opening of 1.1852, with an intraday low at 1.1765, and a high at 1.1858.

Earlier German data showed producer prices accelerated to 0.3% from 0.2% in August, besting expectations of 0.1%, while on a yearly basis, prices accelerated as well to 3.1% from 2.6%, beating forecasts of 2.9%. 

For the whole euro zone, the seasonally adjusted reading for the current trade showed the surplus rose to 33.3 billion euros from 31.5 billion in July, revised upwards from 25.1B, while analysts expected 26.2B, as the seasonally unadjusted reading showed the surplus at 29.6 billion, down from 37.1B in July. 

Otherwise, German Chancellor Angela Merkel said in the Brussels Summit that the second stage of Brexit negotiations depends on the financial settlement with Britain, noting that no more decisions will be taken regarding the future of the euro zone before the new German government is formed. 

Spanish Prime Minister Mariano Rajoy said in earlier remarks that Spain will officially move in to directly rule Catalonia and put it under the control of the Spanish government next Saturday according to the constitutions, adding that these measures are supported by opposition parties across Spain. 

On another note, European Central Bank member Ewald Nowotny said earlier today that the euro has become a safe haven currency like the Swiss Frank, noting that the ECB is monitoring the common currency's impact on inflation closely, and adding that governments should use low interest rates to rein in debt in the long term.  

Otherwise, US existing home sales rose 0.7% in September to an annualized 5.39 million units, compared to a 1.7% decline in August to 5.35 million, while analysts expected a 0.9% drop to 5.30M, as President Donald Trump continues to meet with potential candidates for the Federal Reserve Chair job in February.