BREAKING: EUR muted after euro area CPI data

CPI inflation report for June for the whole euro area was released today at 10:00 am BST. There was a feeling that reading may surprise to the upside after Spanish and German readings showed upside surprises yesterday. However, actual report showed a dovish surprise - headline CPI decelerated from 6.1 to 5.5% YoY in June, more than 5.6% YoY expected. Meanwhile, core gauge accelerated by acceleration was smaller than expected - from 5.3 to 5.4% YoY. Markets reaction was fairly muted - EURUSD ticked higher but scale of gain did not exceed 0.05%.

Euro area, CPI inflation for June

• Headline:  5.5% YoY vs 5.6% YoY expected (6.1% YoY previously)
• Core: 5.4% YoY vs 5.5% YoY expected (5.3% YoY previously)

Source: xStation5