BREAKING: European CPI meets expectations, EURUSD bounces

Flash inflation data from the Eurozone was released at 10:00 am BST. Reading was expected to show a deceleration from 2% YoY to 1.9% YoY. Data came in-line with expectations. Core CPI inflation decelerates from 1% to 0.9% YoY, also in-line with estimates.

June flash readings from euro area member countries:

France: 1.5% YoY vs 1.4% previous

Germany: 2.3% YoY vs 2.5% previous

Spain: 2.4% YoY vs 2.4% previous

Italy: 1.4% YoY vs 1.3% previous

EURUSD took a steep dive at the beginning of the European cash session. The pair broke below 61.8% retracement of recent upward move and tested support zone at 1.18825 later on. Pair bounce following release of the CPI data but remains not far off daily lows. Near-term resistance can be found at 1.18960.

Source: xStation5