Inflation data in the euro area

• The basic consumer price index (CPI) in the euro area (y / y) is 1.1%, the forecast is 1.0%.
• The consumer price index (CPI) in the euro area (y / y) is 1.9%, the forecast is 1.6%.
• The unemployment rate in the euro area is 8.5%, the forecast is 8.4%.

Preliminary data on inflation in the euro area were very optimistic, pointing to a target inflation growth of almost 2%. But the data on inflation were perceived by the market rather discreetly and more negatively due to rising unemployment and overbought of the euro.

The unemployment rate in the EU

The growth of unemployment in the eurozone has knocked down optimism about the euro, putting pressure on European stock indices, which also acted as a driver for the growth of the single currency. As a result, this report may be the reason for the correction of the euro on the return of the market to a pessimistic sentiment .

Fig EUR/USD. Current price – 1.1700

Also, read: “Correlation strategy for trading in the Forex market”

Andre Green