BREAKING: EUR gains after German CPI data

Flash CPI data for May from Germany was a key macro release from Europe scheduled for today. Report was released at 1:00 pm BST and was expected to show an acceleration in German price growth. However, state-level readings released earlier today were somewhat inconclusive - inflation indeed accelerated in Saxony, Bavaria and North-Rhine Westphalia, but has stayed unchanged or slowed in other states, compared to April's readings. 

Actual data for the whole Germany somewhat confirmed market's expectations - CPI inflation accelerated from 2.2 to 2.4% in-line with expectations. However, a monthly reading showed 0.1% MoM, less than 0.2% MoM expected. Annual HICP inflation accelerated slightly more than expected.

Germany, CPI inflation for May

• CPI (annual): 2.4% YoY vs 2.4% YoY expected (2.2% YoY previously)
• CPI (monthly): 0.1% MoM vs 0.2% MoM expected (0.5% MoM previously) 
• HICP (annual): 2.8% YoY vs 2.7% YoY expected (2.4% YoY previously)
• HICP (monthly): 0.2% MoM vs 0.2% MoM expected (0.6% MoM previously)

German state-level CPI readings for May

• Hesse: 1.9% YoY vs 1.9% YoY previously
• Bavaria: 2.7% YoY vs 2.5% YoY previously
• Saxony: 3.1% YoY vs 2.7% YoY previously
• North Rhine-Westphalia: 2.5% YoY vs 2.3% YoY previously
• Brandenburg: 2.9% YoY vs 3.0% YoY previously
• Baden Wuerttemberg: 2.1% YoY vs 2.1% YoY previously

EUR gained following the release with EURUSD jumping above 200-hour moving average (purple), which served as a ceiling for the pair earlier today. However, scale of the move is rather small and does not exceed 0.1% in the first minutes following the release.

Source: xStation5