Euro-zone inflation ticks up from -0.2% to -0.1%, as expected. This is the fourth consecutive month of a negative number, but it can be blamed on oil prices. The unemployment rate remains at 10.2% also as expected. Also core inflation comes out as predicted with a rise from 0.7% to 0.8%.
This doesn’t cheer EUR/USD too much with continues playing around 1.1130.
The euro-zone was expected to report a drop of 0.1% in the Consumer Price Index (CPI) in May, in its preliminary read. In April, the final read was -0.2%. Core CPI was also expected to rise from 0.7% to 0.8%. The unemployment rate was predicted to remain unchanged at 10.2%.
EUR/USD traded around the former support line of 1.1130 towards the release.
Early indications from Germany and Spain did not change the expectations. Earlier in the day, euro-zone monetary data disappointed with private loans sliding to 1.5% y/y and the M3 Money Supply slipping to 4.6%. Also German retail sales missed expectations with a drop of 0.9% after a rise of 1%.
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