Preliminary inflation data in the euro area

• Consumer Price Index (CPI) (y/y) (December), fact 1.6%, forecast 1.8%.

Preliminary inflation data in the euro area were noticeably worse in December than expected. At the same time, it is worth noting that inflation rates also worsened in Italy and France, aggravating the general indicator and sentiment about the euro.

Fig. 1. Euro area consumer price index (CPI) chart

In fact, it slowed the upward trend of the EUR/USD pair on the general weakness of the US dollar and the growing optimism associated with the general positive sentiment around the the US and China trade negotiations.

The upward trend in EUR/USD remains, although it is limited by overbought. So, the return of the pair below 1.1400-1.1380 may serve as a signal for the resumption of the downward trend.

Fig. 2. EUR/USD chart. The current price is 1.1400.

Read also: “How to trade CFD contracts with Ester Holdings Inc.”

Hanzenko Anton

Earn with the help of the trade service on the news Erste News!

Topical articles of the trader’s blog:

1. Geopolitical risks for the beginning of 2019!
2. Top 5 books on trading. Read and progress!
3. Happy New Year! Summing up the past year.

Current Investment ideas:

1. Intel Microprocessors for Macro Earnings at the Stock Exchange! Connect!
2. Fabulous profit at Walt Disney shares in January!