BREAKING: EUR sees little reaction to German inflation data

• Annual inflation rate in Germany fell to 10.0% YoY in November,  from 10.4% YoY in previous month and below market estimates of 10.4%. Goods inflation slowed to 17.2% from 17.8% in October, due to a smaller increase in energy cost (38.4% vs 43.0%). On the other hand, food prices will likely rise further (21.0% vs 20.3%). Services inflation has also slowed to 3.7% from 4.0%, even as the rent price rate accelerated to 1.9% from 1.8%.
• On a monthly basis, the inflation fell to -0.5%, mom in November from 0.9% in previous month and below market estimates of -0.2%.
• Closely watched Harmonised Inflation Rate YoY  decreased to 11.3% in November from 11.6% in September,  in line with analysts’ estimates.

 Lower reading was expected after earlier CPI readings from German regions showed slight deceleration of price pressure:

• North Rhine Westphalia: 10.4% YoY vs 11.0% YoY previously

• Hesse: 9.7% YoY vs 9.9% YoY previously

• Baden Wuerttemberg: 9.6% YoY vs 9.8% YoY previously

• Bavaria: 10.9% YoY vs 11.0% YoY previously

• Brandenburg: 10.5% YoY vs 10.8% YoY previously

• Saxony: 9.9% YoY vs 10.1% YoY previously

Inflation continues to ease, however still remains well above the European Central Bank's target of about 2.0%, suggesting there is a need for continued monetary tightening to combat high inflation.

EURUSD barely reacted to the today’s data release. The pair continues to trade in between 50- and 200-hour moving averages, awaiting a catalyst for a break. Source: xStation5