Germany’s CPI Slows to 2.2% YoY, Core Inflation Stays High at 3.0%
Daily EUR/USD
In the short-term, this information is not likely to trigger instant modifications in ECB financial policy, however it will affect market belief. The Euro might deal with down pressure, as the lower month-on-month CPI and HCPI figures indicate alleviating inflationary pressures, possibly decreasing the seriousness for extra rate of interest walkings.
Traders might translate the -0.7% decrease in HCPI as a signal of a slowing German economy, which might weigh on general Eurozone development expectations. This is especially appropriate as Germany's inflation figures greatly affect ECB considerations. A more dovish understanding of ECB policy might result in weaker need for the Euro in Forex markets, specifically versus currencies of economies with tighter financial policies, s...