Euro drops despite upbeat eurozone CPI; Oil higher on U.S., French air strikes in Syria

The shared currency remained under pressure on Monday, although data showed that consumer price inflation in the euro zone rose unexpectedly last month.

EUR/USD was last at 1.0720, down 0.5%, while EUR/GBP dropped 0.25% to settle at 0.7050.

Eurostat reported that Euro zone CPI rose to a seasonally adjusted annual rate of 0.1%, from 0.0% in the preceding month. Analysts had expected Euro zone CPI to remain unchanged at 0.0% last month.

Core CPI rose to a seasonally adjusted annual rate of 1.1%, from 1.0% in the preceding month. Economists had expected euro area core CPI to remain unchanged at 1.0% last month.

Shares in Europe were in the green territory on Monday, however, traders awaited a volatile day in the wake of terrorist attacks in Paris that left 132 people dead.

France's CAC 40 was up 0.13%, while Germany's DAX was 0.38% higher. London's FTSE 100 gained 0.3%.

The oil price has gained around 1% this morning, helping to drive up shares in energy companies with WTI trading at $41.3 a barrel and Brent up to $44.9 a barrel.

This comes after United States warplanes attacked trucks used by ISIS to smuggle crude oil out of Syria, and France bombed ISIS’s stronghold in Raqqa.

Oil is usually a barometer of geopolitical tensions, particularly anything that could disrupt supplies from the Middle East.