No surprises: German inflation falls back down to 0.8%. June’s rise was just a bump. All the yearly and monthly numbers came out as expected. Germany was expected to report a y/y inflation rate of 0.8% in both the Consumer Price Index (CPI) and the Harmonized Index of Consumer Prices (HICP). in the month of July. Both indices printed a y/y level of 1% in June. Month over month, CPI was expected to advance by 0.2% and HICP by 0.3%. The early releases from the various German states did not consist of any surprises.
Towards the publication, EUR/USD traded around 1.34 after dipping below this round number earlier in the day. The battle with this round number continues.
Update:
- ADP NFP missed with 218K.
- GDP at +4.0%, much better than expected.
The low in EUR/USD has been 1.3394. Support awaits at 1.3325, followed by the November 2013 low of 1.3295. More levels, events and analysis in the EURUSD forecast.
Here is how the battle looks on the chart:
Also in the euro-zone, Spain reported an HICP of -0.3% y/y, contrary to expectations for a drop of only -0.1%. Deflation is already present in the euro-zone’s fourth largest economy.
It’s a very busy day: US ADP Non-Farm Payrolls is up next and afterwards we have the US GDP.
More:
- EURUSD and GBPUSD in an impulsive decline – where next?
- GBP/USD: Trading the US Advance GDP
