The final CPI numbers for July are beginning to pile up and they don’t paint a bright picture: they either confirm the low initial figures or actually consist of downgrades.
EUR/USD reacts negatively and slides below 1.3350.
France, the euro-zone’s second largest economy, saw a year over year rise of only 0.6% in prices, as initially reported. While it is above the EZ flash number of 0.4%, it isn’t impressive to say the least. The month over month figure was revised to the downside: a drop of 0.3% instead of 0.2% originally reported.
The final inflation numbers for Spain didn’t improve the picture. On the contrary: despite enjoying some growth, the euro-zone’s fourth largest economy is seeing falling prices: consumer prices were confirmed at a y/y drop of 0.3% and the EU norm figure was revised down to a drop of 0.4% from 0.3% originally reported. Pries fell also on a month basis.
Germany confirmed the initial read of +0.8% year over year, also far from the 2% target. However, Germany’s Wholesale Price Index (WPI) rose by only 0.1%, contrary to 0.3% expected.
The final CPI number for July for the euro-zone is published tomorrow, together with the GDP numbers for Q2.
Support awaits at 1.3325 followed by 1.3295. Resistance stands at 1.3365. For more, see the EUR/USD forecast.
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