Inflation in Germany is very marginally higher than expected in September. Y/y HICP remains at 0.8% and did not slide to 0.7% as expected. CPI did stand at 0.8% as expected. Month over month, prices remained unchanged, better than a drop of 0.1% expected.
EUR/USD continues trading just above 1.27, holding on to the recovery from the lows.
Germany was expected to report a monthly drop of 0.1% in prices in both the CPI and the European standard HICP. Year over year, CPI was expected to stand at 0.8%, the same as in August, and the HICP to slide from 0.8% to 0.7%. These are preliminary numbers for September.
EUR/USD was trying to lift its head and traded just above 1.27 close to the publication.
Early indicators from the various German states did not imply a big surprise.
The German numbers are critical to the all-European release tomorrow. Some had expected that the lower value of the euro in recent months may have contributed to a higher inflation rate, as prices of imported goods are more expensive.
Strong support stands at 1.2660 and resistance beyond 1.27 awaits at the previous double bottom of 1.2750. For more, see the EURUSD forecast.