BREAKING: EUR strengthens slightly after upbeat German inflation data

Annual inflation rate in Germany fell to 7.6% YoY in June,  from 7.9% YoY in previous month and below market estimates of 8.0%. On a monthly basis, the inflation fell to 0.1%, from 0.9% in May and below market estimates of 0.3%. Harmonised Inflation Rate YoY  decreased to 8.2% in June from 8.7% in May.

Lower reading was expected after earlier CPI readings from German regions showed slight deceleration:

• North Rhine Westphalia: 7.5% YoY vs 8.1% YoY previously
• Bavaria: 7.9% YoY vs 8.1% YoY previously
• Hesse: 8.1% YoY vs 8.4% YoY previously
• Baden-Wuerttemberg: 7.1% YoY vs 7.4% YoY
• Saxony:7.7% YoY vs 8.0% YoY previously

EURUSD saw relatively small reaction to today’s release. The most popular currency pair continued to trade around 1.0525 level. Source: xStation5