Eurozone Inflation Data
- Core Consumer Price Index (CPI) (y/y) (Oct), fact 1.1%, forecast 1.1%.
- Consumer Price Index (CPI) (m/m) (Oct), fact 0.2%, forecast 0.2%.
- Consumer Price Index (CPI) (y/y) (Oct), fact 2.2%, forecast 2.2%.
An inflation report in the eurozone in October fully coincided with the expectation, putting pressure on the euro. This increase in consumer prices in the eurozone has already been taken into account in the value of the euro.
Fig. 1.Eurozone Consumer price index (CPI) chart (y/y)
The ECB President M. Draghi speech made an additional pressure on the euro. He was very restrained and gentle in rhetoric despite the absence of meaningful statements. Uncertainty about the winding down of the Eurozone incentive program (QE) and very pessimistic expectations increased the pressure on the euro.
As a result, the EUR/USD pair was under pressure from the correction, despite the positive opening of trading on European stock indices. This pair is limited by the upward channel, and the weakening of the euro is likely to be limited to support levels: 1.1330 and 1.1310-00.
Fig. 2. EUR/USD chart. Current price – 1.1330
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Hanzenko Anton
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