German CPI inflation reading for April was released at 1:00 pm BST. Market expected headline year-over-year price growth to accelerate from 1.7% in March to 1.9% in April. Actual data showed an acceleration to 2% YoY. In month-over-month terms, CPI was expected to come in at 0.5% MoM while actual showed 0.7% MoM price growth.
A point to note is that significant pick-up in inflation seems to be a general trend for the Old Continent. Data from Spain released this morning showed a massive acceleration in the pace of price growth. Spanish CPI reading was expected to show pick-up from 1.3% to 1.9% YoY. Instead, data showed 2.2% YoY growth.
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Open account Try demo Download mobile app Download mobile appEURUSD moved slightly lower in the aftermath of German CPI data release. In fact, scale of the move could be barely noticed as it did not exceed 5 pips. There was no reaction on the stock markets as well. It should not come as a surprise as central banks like Fed or ECB stay on hold and ignore inflation pick-ups claiming they are transitory.
EURUSD ignored German inflation reading. Main currency pair continues to trade within an upward channel and moves closer to the recent local peak at around 1.2150. Source: xStation5
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