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German inflation meets expectations; EURUSD retests pivotal 1.15 level

Summary:

  • German Prelim CPI Y/Y: 2.1% vs 2.1% exp
  • Euro area estimate out tomorrow
  • EURUSD retests key 1.15 level

The latest inflation figures form several European countries are out today, with no more important than the German release. The preliminary CPI for Germany came in inline with consensus forecasts with the year-on-year reading showing a 2.1% rise and the month-on-month a 0.1% increase. The HICP can be seen to reflect more accurately the true price pressure in the economy and here there was also little to go off, with the year-on-year also meeting expectations at 2.1% while the month-on-month missed the 0.2% forecast to come in lower at 0.1%. 

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 The latest German inflation figures came in broadly inline with forecasts and while they showed a small decline on the prior readings they remain above the 2% level. Source: XTB Macrobond

The Euro is moving higher in general today with only CAD and the TRY rising against the single currency. The EURUSD in particular is at a potentially key level with the world’s most popular cross once more falling to retest the key level around 1.15. This is the region where price made a decisive break higher last summer and recent pullbacks into the region have attracted buyers and provided a floor. 

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 EURUSD is retesting a major swing level around 1.15. Source: xStation

Looking ahead the Eurozone wide CPI number will be released tomorrow morning at 10AM (BST), although this doesn’t normally contain too many surprises given the regional releases beforehand. There is also an EU economic summit which began today and is scheduled to run through tomorrow too. This also contains the potential to deliver market moving news for the Euro. 

 

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