BREAKING: EUR sees little reaction to German CPI data

Flash CPI inflation data for August from Germany was released at 1:00 pm BST today. Market expected headline gauge to accelerate from 7.5 to 7.8% YoY. Instead, actual report showed consumer price growth accelerating to 7.9% YoY. On a monthly basis CPI inflation reached 0.3% MoM (exp. 0.4% MoM). However, the reading was not surprising as partial data from German states released earlier in the day pointed to acceleration in price growth. Overall, the reading does not change much in terms of outlook for ECB policy moves.

• North Rhine Westphalia: 8.1% YoY vs 7.8% previously

• Hesse: 8.0% YoY vs 7.6% previously

• Bavaria: 8.4% YoY vs 8.0% previously

• Brandenburg: 7.9% YoY vs 7.6% previously

• Saxony: 7.3% YoY vs 7.2% previously

EURUSD barely experienced any reaction to the German data as state-level reports strongly hinted at higher-than-expected price growth in the largest European economy. The main currency pair attempted to break above a short-term 0.9980-1.0028 trading range earlier today but a break is yet to come as EURUSD struggles at the upper limit orange circle).

Source: xStation5