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Is inflation beginning to get back to normal in the euro-zone? It seems that oil prices are  moving up and so is CPI, that beat expectations with +0.3%. Another positive surprise comes from core CPI which rose 0.9%, much higher than +0.6% that we have seen so many times in recent month.

EUR/USD is now making an attempt to retake 1.10.

The better than expected numbers feed into tomorrow’s all important ECB meeting. Will Draghi show optimism  as inflation is off from the bottom or will he see it as a one-off and push through with QE all the way?

The euro-zone was expected to report an annual rise of 0.2% in the  Consumer Price Index (headline CPI) after 0% in April. Core CPI was predicted to rise by 0.7% y/y from 0.6% last time.

EUR/USD was on a recovery path towards the publication, trading  around 1.0980.

Yesterday, Germany  released its preliminary May inflation read and it came out stronger than expected.

More:  EUR/USD Still On Track To Break Below Parity – BTMU

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