Flash CPI reading for March from the euro area was released today at 10:00 am BST. Headline reading showed slowdown as expected and, contrary to German or French readings, this slowdown was bigger than expected. However, core CPI accelerated from 5.6 to 5.7% YoY in-line with market expectations. This shows that drop in headline is driven mostly by base effects in oil, rather than general pullback in overall price level.
Euro area
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app-
Headline: 6.9% YoY vs 7.1% YoY expected (8.5% YoY previously)
-
Core: 5.7% YoY vs 5.7% YoY expected (5.6% YoY previously)
Italy
-
Headline: 7.7% YoY vs 8.2% YoY expected (9.1% YoY previously)
FX market saw a dovish reaction with EUR pulling back against other major currencies. DE30, and other equity indices, jumped in a knee-jerk move but those gains were quickly erased and now DE30 trades flat compared to pre-announcement levels in the 15,700 pts area.
Gains on EURUSD triggered after release of French CPI data turned out to be short-lived - the main currency pair quickly pulled back below 1.09 mark and continued to move lower after EMU CPI reading. Source: xStation5
