EUR/USD Ignores German and French CPI, ECB June Meeting in Focus

Talking Points:

• German CPI Confirmed at 1.3% y/y in April vs. 1.0% in March
• French CPI Reported Worse than Expected
• Eurozone CPI Due Later this Week

The release of the final revision of April’s German CPI reading proved uneventful, with the benchmark year-on-year inflation rate confirmed at 1.3 percent and the month-on-month change matching initial estimates to show a -0.2 percent decline.

On the other hand, French CPI reported worse than expected with the headline year-on-year inflation rate at 0.7 percent, missing estimates calling for a print of 0.9 percent. The month-on-month change also missed estimates reporting at 0.0 percent vs 0.1 percent expected.

The Euro was little-changed to the inflation reports and managed to hold onto overnight gains. The move may reflect profit-taking after the ECB announced the possibility of intervention in June sending the EUR/USD from a year-to-date high of 1.3995 to a May low of 1.36902.

EUR/USD 1-Minute Chart. February 13, 2014

EUR/USD 5-Minute Chart. May 14, 2014. Charted created using Marketscope 2.0.

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to [email protected].

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