Eurozone Core Harmonized Index of Consumer Prices (MoM) unchanged at 0.3% in January

💡 DMK Insight

The Eurozone’s Core HICP holding steady at 0.3% is a mixed bag for traders right now. On one hand, this stability suggests that inflation pressures aren’t escalating, which could keep the European Central Bank (ECB) from aggressive rate hikes. Traders focusing on the euro might find this a signal to reassess long positions, especially if the ECB maintains a cautious stance. However, the unchanged figure could also indicate underlying economic stagnation, which might weigh on growth-sensitive assets. Watch how this plays out in the forex market, particularly against the USD, as traders digest these inflation signals. Keep an eye on the upcoming ECB meetings and any comments from officials regarding future monetary policy. If the euro starts to weaken, it could create opportunities for short positions, especially if inflation data from the U.S. continues to show strength. The 1.10 level against the dollar could be a key support to monitor, as breaks below this might trigger further selling pressure.