Preliminary inflation figures from Germany show an ongoing slump in prices. National CPI rose 0.1% m/m as expected and 0.8% y/y. However, the European standard HICP missed with remaining flat m/m and a rise of 0.7% y/y, both 0.1% bellow predictions.
These data feed into the all-European figures released tomorrow, which in turn influence the European Central Bank’s upcoming decision next week. On this background, there are higher chances of more QE rather than a tapering down of the program or an abrupt ending to it.
EUR/USD remains entrenched in range, trading around 1.05080. Previous attempts to rise were rejected, but so was a move below the double bottom of 1.0520.
The next big thing awaiting the pair is the second release of US GDP for Q3. See how to trade the GDP with EUR/USD.
Here is the chart of euro/dollar. There are no earth-shattering movements, but the pair is sliding.
