(Action Economics) - 06:11 EST FX Action: EUR-USD back to near net unchanged after a brief rally in the wake of the pan-Eurozone inflation data, which met expectations at 0.3% y/y, dipping from 0.4% y/y in July but not exactly the "significant drop" towards deflation territory that the ECB reportedly would have needed to see if it were to take further policy action at next week's meeting. ECB's Nowotny, however, gave the euro market a bearish cue, saying that "it is no secret that we are seeing somewhat of a downturn in the economy", adding that "Germany is no longer able to be a locomotive for growth". His remarks fits our expectation for the ECB to next week revise growth projections lower from the present +1.0% forecast for this year. EUR-USD reached a high of 1.3205 in the immediate wake of inflation data before sliding back to the 1.3175-85 range. We are targeting last September's low at 1.3105 and 1.3000. The deterioration in the Ukraine crisis and the impact of sanctions against Russian, which is the Eurozone's fourth biggest trading partner, is also euro negative. Resistance is marked at 1.3217-20 and 1.3242 (Monday's high).