Euro CPI Reflects ‘Wall of Worry’ over Energy Prices

Eurozone CPI Speaking Factors:

  • Eurozone inflation highlights considerations over the power sector
  • Eurozone CPI in keeping with expectations whereas the inflation price (YoY) edges larger
  • EUR/USD stays beneath strain as sentiment dampens

Eurozone Core Inflation Charge (YoY) for the Eurozone got here in at 1.9%, with the inflation price (YoY) rising to three.4%

Go to the DailyFX Academic Heart to find how CPI information impacts foreign money pairs

Eurozone CPI: Euro CPI Reflects ‘Wall of Worry’ over Energy Prices

DailyFX Financial Calendar

With rising power costs and provide shortages weighing closely on sentiment, policymakers proceed to face strain to deal with the surge in costs that’s anticipated to scale back the buying energy of shoppers.

Following on from final month’s ECB assembly, the European Central Financial institution (ECB) has steered {that a} discount within the Pandemic Emergency Buy Program (PEPP) could also be anticipated within the foreseeable future. Because the ECB prepares for the subsequent assembly on 6 October 2021, deal with rising power costs is more likely to stay a key focus for each shoppers and buyers alike.

As Europe prepares for winter, provide constraints within the oil and fuel trade mixed with rising commodity costs proceed to dampen sentiment, impacting client spending regardless of low rates of interest.

Eurozone CPI: Euro CPI Reflects ‘Wall of Worry’ over Energy Prices

Supply: ECB Eurostats

EUR/USD Unfazed by CPI information

Following the discharge of the info, EUR/USD value motion continued to commerce inside a well-defined vary, exhibiting little response to the financial information.

EUR/USD 5 Minute Chart

Eurozone CPI: Euro CPI Reflects ‘Wall of Worry’ over Energy Prices

Over the subsequent few weeks, value motion will doubtless stay intently linked to the actions undertaken by each the Federal reserve and the European Central Financial institution within the battle towards inflation.

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and observe Tammy on Twitter: @Tams707


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