Euro Area Consumer Price Index (CPI)
Euro Area inflation slowed in August, with the flash estimate for the Consumer Price Index (CPI) showing the headline reading narrowing to 2.2% from 2.6% per annum the month prior.
Euro Area Economic Calendar – August 30, 2024
The core rate also slipped to 2.8% from 2.9% during the same period, with the update from Eurostat revealing that ‘services is expected to have the highest annual rate in August (4.2%, compared with 4.0% in July), followed by food, alcohol & tobacco (2.4%, compared with 2.3% in July), non-energy industrial goods (0.4%, compared with 0.7% in July) and energy (-3.0%, compared with 1.2% in July).’
Join David Song for the Weekly Fundamental Market Outlook webinar. David provides a market overview and takes questions in real-time. Register Here
EUR/USD Chart – 15 Minute
Chart Prepared by David Song, Strategist; EUR/USD on TradingView
EUR/USD showed a limited reaction to the slowdown in Euro Area inflation but ended up extending the decline from earlier in the week to close at 1.10470. Nevertheless, EUR/USD recovered going into September, with exchange rate registering a weekly close of 1.1085.
Looking ahead, the headline reading for Euro Area inflation is seen narrowing to 2.0% in September from 2.2% the month prior, while the core CPI is expected to hold steady at 2.8%.
With that said, a downtick in both the headline and core CPI may drag on EUR/USD as it encourages the European Central Bank (ECB) to implement further rate-cuts in 2024, but signs of sticky price growth may generate a bullish reaction in the Euro as puts pressure on the Governing Council to further combat inflation.
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Latest market news
Today 09:05 PM
Latest articles
Today 08:21 AM
Yesterday 06:28 PM
Yesterday 09:46 AM