Better than expected inflation data in the euro-zone: headline CPI dropped to 1.3% but beat projections at 1.2%. More importantly, core inflation is bouncing back up to 1.1%, up from 0.9% and better than 1% predicted.
EUR/USD initially advanced but then resumed its correction to the downside.
Is this a buying opportunity on EUR/USD?
The preliminary inflation report for June was expected to show a slowdown in headline CPI from 1.4% to 1.2%. Core inflation was predicted to recover from 0.9% to 1%.
Early indications were mixed: Spain’s measure missed expectations while Germany’s figure beat expectations. The French figures met estimates.
EUR/USD was trading lower, just around 1.14. It had already reached a new 14-month high of 1.1445. Preview: EUR/USD: Inflation data could start the next rally
Earlier in the day, we learned that German retail sales jumped by 0.5% against 0.3% expected. However, the number of the unemployed rose by 7K, a rarity in Germany, where jobless claims were in the fall for a long time.
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