Forex - Euro slips vs. dollar after mixed German data

Forex Pros – The euro slipped against the U.S. dollar on Wednesday, following the release of better-than-expected data on Germany's consumer price index and a disappointing report on the country's trade balance. 

Shortly before the European trading session, EUR/USD slid to 1.3567, shedding 0.25%. The pair was likely to find resistance at 1.3839, the high of Feb. 9, and support at 1.3434, last Tuesday's low and a 9-month low. 

However, the euro rose against sterling, with EUR/GBP climbing 0.28% to reach 0.9095. 

Earlier in the day, official data showed that while Germany's CPI rose unexpectedly in February, by 0.4% compared with 0.2% in January. But the report came as other data showed that the country's trade surplus shrunk in January to EUR 8.7 billion from EUR 16.7 billion, defying forecasts. 

The euro's decline against the dollar also came after the Fitch ratings agency warned that Portugal's gradual approach to fiscal consolidation was a "concern," sparking fresh fears over the euro zone economy. 

On Tuesday, Paul Rawkins, a senior director at Fitch, said insufficient consolidation by the country could trigger a downgrade of its double-A rating.