A slightly stronger level of inflation, at least in the European standard “Harmonized” version, HICP. prices rose by 0.2% m/m and 1.8% y/y, another acceleration that will push euro-zone inflation higher. Price rises stood at 1.5% y/y beforehand in the HICP and 1.7% in the national level.
So, the euro-zone inflation level could be higher in the publication tomorrow. In turn, the ECB could feel more confident in the expected taper decision next week.
EUR/USD is ticking up to 1.2930, after the downfall from the highs. The pair made a significant break above 1.20 and all the way to 1.2070 before making a total U-turn. Support awaits at 1.1870. Resistance remains at the round level of 1.20.
Germany was expected to report a rise of 0.1% in prices m/m in August. Year over year, CPI carried expectations for 1.8% and HICP, the European standard version, carried expectations for 1.7%. Earlier in the day, Spain reported a rise of inflation from 1.5% to 1.6%, below projections for 1.7%.
EUR/USD chart.
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