BREAKING: EURUSD retests 1.06 after CPI data

Flash CPI reports for February from France and Spain were released today at 7:45 am GMT and 8:00 am GMT, respectively. Expectations were for a slight acceleration in French headline price growth and a slight slowdown in Spanish price growth. French data turned out to be higher-than-expected and provided some support for EUR while pushing European indices, like DE30, slightly lower.  Spanish reading further magnified those moves as it showed price growth accelerating in spite of an expected slowdown.

France

• Annual: 6.2% YoY vs 6.1% YoY expected (6.0% YoY previously)

• Monthly: +0.9% MoM vs +0.7% MoM expected (+0.4% MoM previously)

Spain

• Annual: 6.1% YoY vs 5.7% YoY expected (5.9% YoY previously)

• Monthly: +1.0% MoM vs +0.9% MoM expected (-0.4% MoM previously)

Those releases offer an important insight but, as far as market reaction is concerned, the best is yet to come. German CPI reading for February, the most closely watched one in Europe, will be released tomorrow at 1:00 pm GMT and is expected to show a slowdown from 8.7 to 8.5% YoY. Release of ECB minutes scheduled for Thursday, 12:30 pm GMT also has a scope to move EUR.

EURUSD

DE30

Equities, including German DE30, took after today's CPI data. DE30 is making a test of the lower limit of the ongoing short-term trading range in the 15,300 pts area. Source: xStation5