BREAKING: French CPI slightly lower than expected, EURUSD flat on the news

France, Inflation Data for August: 

French HICP YoY 2.2% Final: vs 2.2% (forecast) vs 2.2% (previous) 

French CPI YoY NSA 1.8%: vs 1.9% (forecast)  vs 1.9% (previous)

French CPI MoM NSA: 0.5% vs 0.6% (forecast)  vs 0.6% (previous)

French CPI rises lower than expected, confirming yesterday’s ECB decision to lower rates. The CPI excluding the tobacco index came in slightly below expectations at 120.01 vs. 120.07. The market reaction is muted as participants await upcoming U.S. data. The University of Michigan report might serve as the last clear signal regarding the extent of FOMC rate cuts. EUR/USD is trading near resistance at the 61.8% Fibonacci retracement level. A breach of this level could lead to a retest of 1.11 or higher for the pair. The RSI is in neutral territory, showing a monthly bearish divergence with lower highs and lower lows. The MACD also confirms a bearish outlook for the pair.