Latest data released by Eurostat - 4 June 2019
- Prior +1.7%
- Core CPI +0.8% vs +0.9% y/y expected
- Prior +1.3%
Weaker-than-expected inflation figures as the Easter boost fades and this shows that the inflation outlook will continue to pose a problem for the ECB as they look to continue justifying their forward guidance of raising rates amid a global economic slowdown as well.
We'll have to wait and see what June has to offer in order to get a better gauge of the underlying trend but as of now, there's nothing to suggest that the ECB should change its policy stance just yet. EUR/USD sits at 1.1250 currently, off the highs earlier after failing to breach the 100-day moving average at 1.1278.
