Headline inflation in the euro zone is +0.1% y/y, better than 0% expected, but m/m the figure remained unchanged at 0.1%. Corrected: core inflation stands at 1.1%, up from 1.1% originally published.
EUR/USD is stable around 1.0725, in anticipation for Draghi’s upcoming speech.
The euro-zone was expected to confirm the preliminary CPI read for October: a rise of 0.1% in headline inflation m/m, flat year over and perhaps most importantly this time: 1% in core inflation y/y.
EUR/USD traded somewhat lower in range, around 1.0725 before the release.
We all know that headline inflation is down because of oil prices, but at least core inflation has been edging up from 0.6% to 1%. However, ECB President Mario Draghi said along the lines of “the strengthening in core inflation is weakening”, expressing concern that the fall in energy prices might reach core prices and not be too transitory.
Mario Draghi begins speaking shortly in Madrid.
More: EUR/USD Following the Paris Attacks – What’s Next? – Nomura
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