EUR and EU CPI 09:00 GMT




  • Expected 1.0% -Previous 1.5%

  • Above Expected: EUR Bullish

  • Below Expected: EUR Bearish

  • ey pairs to watch: EUR/USD, EUR/JPY, EUR/GBP


While inflation is far from being a concern in the EU, the fact is that the main mandate of the ECB is to keep inflation under control. Anyway inflation in the area is unlikely to rise but on contrary, expected to decrease.  With markets talking about the possibility of negative deposit rates and the ECB meeting next week, a reading below expected should put the Euro under pressure, as chances of further rate cuts, and negative rates for deposits increases. A reading at 1.5% or above, despite a bit worrisome for the ECB, should be understood as extremely positive for the EU, as such reading will be a first signthe economy is moving away from current recession.