• Prior 0.4%
  • Core HICP 0.7% vs 0.9% exp. Prior 0.9%

Confirmation of lower CPI but more damaging is the core slipping by 2 percentage points.

EUR/USD booted down to 1.2626

That’s not good reading at all from the eurozone and that core number was holding up pretty well. It’s showing that domestically prices are really slipping and rate cuts aren’t having any effect. With the low take up in the TLTRO and lack of borrowing demand the ECB are going to be facing some sticky questions on Thursday.

EUR/USD now down to 1.2616

Eurozone Core HICP y/y 30 09 2014

Eurozone Core HICP y/y 30 09 2014