Just hunting around for reasons behind the euro move and there were some inflation figures out earlier that aren’t looking too rosy.

  • Denmark HICP fell to 0.3% from 0.5% y/y (CPI 0.5% vs 0.7% prior)
  • Holland HICP 0.1% vs 0.6% exp and 0.6% prior y/y
  • Greece (as we had earlier) HICP -2.1% vs -1.6% prior. CPI -2.0% vs -1.3% prior

The only countries bucking the trend were Croatia (-2.2% vs -3.0% prior) and Cyprus (-0.1% vs -0.4% prior)

I wouldn’t say it’s the only cause for the falls but some of these countries are now showing sizable falls each month. Steadily losing 0.1-0.2% a month is bad on its own but losing clips of 0.4-0.6% a month is very worrisome.

EUR/USD has taken another leg down to 1.3534 with the bears in full control once again.