Prior +2.1%HICP +2.0% vs +2.1% y/y expectedPrior +2.1%Core CPI Y/Y +2.5% vs +2.5% priorWe have slight misses here but that was pretty much expected after the softer German states readings here. Having said that, the core measure matched the prior reading. The data won’t change anything for the ECB. The market reaction has been muted given no change to interest rates outlook.
This article was written by Giuseppe Dellamotta at investinglive.com.
💡 DMK Insight
The latest inflation data shows a slight miss, but here’s why it matters: With HICP at +2.1% and core CPI steady at +2.5%, traders should note that the European Central Bank (ECB) is unlikely to shift its policy stance. This stability suggests that interest rates will remain unchanged in the near term, which could keep the euro under pressure against the dollar. For day traders, this means watching for potential volatility in EUR/USD as market participants digest these figures. If the euro weakens, it could create opportunities for short positions. On the flip side, the core CPI holding steady might indicate underlying inflationary pressures that could resurface, especially if energy prices rise. Traders should keep an eye on the upcoming economic indicators, particularly from the German states, as they could provide further insights into regional economic health. Key levels to watch in EUR/USD are the recent lows; a break below those could signal a stronger bearish trend.
📮 Takeaway
Watch for EUR/USD reaction around recent lows; a break could signal further downside as ECB policy remains unchanged.





