No surprises from the euro-zone inflation numbers: prices are a flat 0% y/y and core inflation remains at 0.6% once again. The unemployment rate disappoints with 11.3%.
EUR/USD is slipping from high ground.
The numbers could be seen as marginally disappointing after Germany’s figures came out just a bit expectations yesterday. The euro-zone was expected to report a flat read on headline CPI while a core inflation number of +0.6% in April. EUR/USD was trading at sky high levels of above 1.12.
Earlier in the day, German retail sales and French consumer spending missed, but the euro ignored it. A further shortfall from German jobless numbers was totally ignored and the euro began a rally that sent it above 1.12.
The strength of the pair originated from the poor US GDP report. This sent the pair above critical resistance at 1.1050, and since then, we only had short pauses. The Fed only temporarily delayed the rally.
Here is the chart:
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