German CPI Comes in as Expected Matching 2011 Highs
German consumer prices in July rose 0.4% m/m meeting consensus expectations and 2.4% y/y also meeting forecasts. The annual figure climbed away from 2.3% in June to match the current 2011 and multi-year high, even as growth in the EMU’s largest economy begins to slow. The monthly reading marked the fastest rise for consumer prices since March and came in markedly higher than the recent string of near zero expansions as inflation accelerates again.
The euro caught some fresh bids in the aftermath of the German CPI showing in lieu of the fact that higher inflation may press the ECB into action again on the rate front despite the current slowdown in the euro-region. The outlook for the euro, however, remains very clouded as the markets continues to digest the S&P downgrade of the US late last week and the whipsaw price action we have seen so far in all asset classes. For a technical outlook click here.
Written by Jonathan Granby, DailyFX Research Team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.