Reversed direction last week, gaining ground overall as the United States reported mixed economic data, while the ECB is now expected to cut its asset purchase program in half beginning in January. The rate began the week by consolidating on Monday after making its weekly low of 1.1719 as the United States celebrated a bank holiday and in the absence of any significant numbers from the EU. The pair rallied on Tuesday after ECB Executive Board Member Sabine Lautenschlaeger said that, “We should begin reducing our bond purchases next year”, she added that, “bond purchases will come to an end, while interest rates will remain low, well past the horizon of net asset purchases”. The rate extended its gains on Wednesday after the FOMC Meeting Minutes showed that core members were still on track for a December rate hike despite concerns over weak inflation. The Minutes noted that, “The risks to the projection for inflation were also seen as balanced. Downside risks included the possibilities that longer-term inflation expectations may have edged down or that the recent run of soft inflation readings could prove to be more persistent than the staff expected. These downside risks were seen as essentially counterbalanced by the upside risk that inflation could increase more than expected in an economy that was projected to continue operating above its longer-run potential.” The pair then declined after making its weekly high of 1.1879 on Thursday after ECB chief economist Peter Praet said that, “While the euro area recovery remains solid, broad-based and resilient, the economy has yet to make sufficient progress towards a sustained adjustment in the path of inflation to levels that are consistent with the Governing Council’s aim”. The central bank is expected to “recalibrate” its asset purchase program on the 26th. Thursday’s economic data had U.S. PPI increase by +0.4% m/m as widely anticipated, while Core PPI increased by +0.4% compared to an expectation of +0.2%. Also, U.S. Initial Jobless Claims fell to 243K versus 251K expected. The pair continued selling off on Friday despite U.S. CPI, which increased by +0.5% m/m versus +0.6% anticipated, while Core CPI increased by just +0.1% compared to an expectation of +0.2%. Also, U.S. Retail Sales rose +1.6% m/m versus an expectation of +1.7%, and Core Retail Sales, which increased by +1.0% versus +0.9% expected. EUR/USD closed at 1.1818, with a net gain of +0.8% for the week.