Eurozone March HICP inflation: -0.1% y/y. This was in line with median expectations and up from -0.2% y/y in the previous month. We had been looking for a slightly higher number after yesterday’s 0.3% point jump in the German HICP rate but national data from France and Spain earlier already suggested that steady rates elsewhere would prevent a more pronounced uptick in the overall number. Indeed Italian HICP, published at the same time as the EMU number, actually showed the headline rate falling even further into negative territory. The gap between Eurozone countries is widening again, which is not making the ECB’s task any easier. With the headline rate stuck in negative territory, markets will likely continue to speculate about Draghi’s next steps, although the fact that core inflation actually rose to 1.0% y/y from 0.8% y/y in February highlights that energy prices, where were down 8.7% y/y in March, remain the main driving factor behind the negative rate.
The dollar extended Yellen-inspired declines against the euro, which was the chief benefactor of the dynamic, while ebbing back toward lows versus other currencies. This put EUR-USD at a 1.1383 peak after breaching the February high, trading at levels last seen in October.
Always trade with strict risk management and remember that your capital is the single most important financial aspect of your trading business.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Senior Currency Strategist
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Please note that times displayed based on local time zone and are from time of writing this report.
Click here to access the full HotForex Economic calendar.