No surprises in the final CPI numbers for March: CPI stands at -0.1% y/y and core CPI at +0.6%. This confirms the preliminary read and came out as expected.
EUR/USD continues its journey north, riding on USD weakness, trading at 1.0822.
The euro-zone was expected to confirm the initial numbers for March: a lower deflation rate. The drop of 0.1% in headline CPI and the rise of 0.6% in core CPI were expected to be confirmed.
EUR/USD advanced above 1.08 towards the publication, riding on the weakness of the US dollar, after the latter’s economy experienced a streak of losing figures.
The stabilization in oil prices after the big falls helped stabilize the headline figure. However, the core number shows that demand is still quite poor in the euro-area.
In the rate decision on Wednesday, Draghi showed optimism about reaching the 2% inflation target but was determined to continue with the QE program that just began in March.
In our latest podcast, we talk about The Confetti Lady that moved Draghi but not Markets