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German CPI falls 0.3% m/m, +0.8% y/y, HICP only +0.7%

While inflation is stronger in Germany than the euro-zone average, it remains depressed, also in October: prices fell 0.3%, worse than 0.1% expected, and y/y, they remained at a rise of 0.8%. The HICP number, which is the EU standard,  also shows a slide of 0.3%, but year over year, it is down to 0.7%. This implies a lower EZ CPI.

EUR/USD is trading above 1.26 and it doesn’t seem to be affected by the number at the moment. Update: EUR/USD is finally reacting, sliding below 1.26.

Germany was expected to report a drop of 0.1% in prices in the preliminary read of CPI for October. Year over year, a rate of 0.9% was expected after 0.8% last month. However, some regional data from the various German states pointed out to a weaker number. This is critical for tomorrow’s euro-zone inflation number.

EUR/USD traded around 1.2585 towards the release, following a lot of news from both sides of the Atlantic. Fed Chair Janet Yellen is speaking at the same time.

Earlier, German unemployment  came out better than expected with a fall of 22K. We had a beat also in the US with a  strong rise in Q3 GDP at 3.5%, even though the internals were mixed.

The dollar was stronger on a hawkish Federal Reserve, especially with its upbeat assessment of the jobs market.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.