- And no tendency of deflation
- Predictions were that euro should devalue against other major currencies, and was seen as a good sign for inflation
- More participants are expecting a further decrease in short term interest rates due to possible ECB rate cuts
- Not clear to what extent geopolitical risks played into decline of headline indicator
- Decline in German sentiment indicator mainly due to strong Q1 and expectations for more moderate growth in rest of the year
The German data has me questioning my EUR/USD longs. My aim this week was to see what the revised inflation data brought then have an assessment of how things stand. I may decide to cash in if I think we’re going lower and then start scaling longs in further down. I’m only marginally underwater on the average of my trades so it won’t be a big deal to get out and wait a while.
I said I was happy to fight Mr Draghi but it’s the data that will make my mind up
