German inflation data

  • Prior was 2.5%

  • Prices +0.1% m/m vs +0.2% m/m expected

HICP (EU harmonized)

  • 2.2% y/y vs +2.3% expected (2.4% prior)

  • +0.1% m/m vs +0.2% expected (+0.1% m/m prior)

The regional numbers were mixed but there were so soft spots so it's not entirely surprising. That said, it's not a trend that's going to get the ECB thinking about moving faster, and maybe not moving at all.

The euro is up 20 pips to 1.1387 today and has modestly extended yesterday's bullish engulfing candle.