EUR up as Eurozone Inflation hits 2% led by surge in oil prices

0
129

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Get the best parts of DailyFX.com in the new DailyFX App

Download

Euro Analysis and Talking Points

  • Eurozone Inflation hits 2%, however, core inflation remains subdued
  • Euro supported by month-end USD selling and EU immigration deal

Eurozone Inflation hits 2%, while ECB’s preferred measure remains subdued

Eurozone inflation hit the ECB’s target for the first time in more than a year, rising 2% Y/Y from 1.9% in June, matching estimates. Yet again the headline figure had been led by energy prices, which surged by 8% (Prev. 6.1%), while food, alcohol and tobacco jumped by 2.8% from 2.5% in May. Core inflation printed at 1%, meeting forecasts, however dipped from the prior month by 0.1ppt.

ECB Announces Plans to Exit QE on Growing Inflation Confidence

Earlier this month, the ECB announced plans to exit from its ultra-loose monetary policy with bond buying set to end in December with the central bank increasingly confident that inflation will settle at close to but below 2% over the medium term. However, the rise in inflation has largely been led by the surge in energy prices, while core inflation continues to remain subdued which in turn has led to the ECB keeping to its cautious stance with a rate hike not seen till September 2019 at the very least.

Euro Supported by Immigration Deal

The Euro is among the outperforming currencies today following reports that the on the highly charged issue of immigration into the bloc. Alongside this, month end selling in the USD has also helped push the Euro higher with the pair hovering around 1.1650.

EURUSD PRICE CHART 1: 1-MINUTE TIMEFRAME (Intra-day)

EUR up as Eurozone Inflation hits 2% led by surge in oil prices

Is the Euro recovery temporary?

— Written by Justin McQueen, Market Analyst

provides forex news and technical analysis on the trends that influence the global currency markets.


About your FOREX.com Demo Account

A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.

Join Us For Our Free Webinars

  • Get daily market analysis from our in-house experts
  • Choose from more than 25 webinars each week
  • Put your questions to our experts in real-time Q&As

Register nowWant to hold off on improving your trading? Click here to dismiss.

Get Your Free Trading Guides

With your broad range of free expert guides, you’ll explore:

  • The basics of forex trading and how to develop your strategy
  • Foundational knowledge to help you develop an edge in the market
  • What’s ahead for major FX pairs, Gold, Oil and more

Download a Free GuideWant to hold off on improving your trading? Click here to dismiss.