Eurozone Core Harmonized Index of Consumer Prices (MoM) increased to 0.3% in December from previous -0.5%

💡 DMK Insight

The Eurozone’s Core HICP rising to 0.3% from -0.5% is a significant shift that traders need to pay attention to. This uptick suggests a potential change in inflationary pressures, which could influence the European Central Bank’s (ECB) monetary policy decisions. If inflation continues to rise, we might see a shift in interest rate expectations, impacting the euro and related assets. Traders should monitor how this data affects the euro against major pairs, especially the USD, as a stronger euro could lead to a bearish sentiment in the dollar. Additionally, keep an eye on the 1.10 level for EUR/USD; a break above could signal further bullish momentum. On the flip side, if inflation is perceived as temporary, the ECB might maintain its current stance, leading to potential volatility. Watch for market reactions in the coming days, particularly in the forex markets, as traders digest this data and adjust their positions accordingly.