BREAKING: EUR drops after Spanish CPI data

Flash CPI data from Spain for May was released this morning at 8:00 am BST. Spanish inflation figures are closely watched as they tend to be released before other key inflation reports from EMU. Spanish inflation report came in below market expectations with annual price growth slowing from 4.1 to 3.2% YoY in May. On a monthly basis, prices dropped 0.1% MoM. EUR moved lower in a knee-jerk move. European equity markets also saw a drop but in this case reaction may have been distorted by launch of the European cash trading session.

Spain, CPI inflation for May

• Annual: 3.2% YoY vs 3.5% YoY expected (4.1% YoY previously)
• Monthly: -0.1% MoM vs 0.1% MoM expected (0.6% MoM previously)

EURUSD dropped after Spanish CPI release with the main currency pair looking back towards daily lows. Source: xStation5