Euro Ignores German CPI, Pressure Mounts on ECB Draghi Comments
- German CPI year-on-year Inflation Lowest in 5 months.
- Euro Little-Changed vs. US Dollar Following Inflation Data
- Euro at Risk as Spotlight turns to US Confidence Due Later Today
The Euro ignored the release of the final revision of February’s German CPI but climbed higher against the US Dollar as it recovered some losses from yesterday. The benchmark year-on-year inflation rate confirmed at 1.2 percent and is the lowest inflation print since October 2013. The month-on-month change matched initial estimates of 0.5 percent.
The German inflation data follows ominous comments made yesterday by ECB President Mario Draghi that sent the euro tumbling. He verbally intervened – that is common for central banks – saying that the current rate of exchange is a factor for the persisting low-inflation and noted that an exchange rate close to 2012 levels would be ideal. Following the comments, DailyFX Strategist Ilya Spivak notes that the Euro rally may finally turn-over on the back of a technical top that may be in place.
EUR/USD 5-minute Chart. March 14, 2014
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