The final read of the euro-zone’s CPI consisted of a revision to the upside: 0.8% instead of 0.7% originally reported. Core CPI was confirmed at 0.8%. The euro-zone’s Consumer Price Index (CPI) was expected to be confirmed at an annual rise of 0.7%, while the Core CPI was expected to be confirmed at 0.8%. The figures are the final ones for January. An initial estimate of price rises for February is scheduled for Friday and is expected to have a big impact on the ECB decision next week.
EUR/USD traded on higher ground, around 1.3760, after already reaching a high of 1.3770. It is now making another attempt to break above last week’s high of 1.3773, which was a 6 week high.
The German IFO Business Climate also surprised to the upside and gave the euro a boost. The upside surprised contradicted the downside surprise seen from ZEW last week.
Traders still have one eye for events in the Ukraine. Now that the Olympic Games in Sochi are over, Russia could focus more on its neighbor, and that could have consequences also on the euro.
1.3773 was the high seen last week and is immediate resistance for EUR/USD. 1.3730 provides weak support. For more, see the EURUSD forecast.
