Euro Slips Notably After Eurozone And German Inflation Reports

Forex News

The euro continues its downward trend. The euro/dollar pair has lost another 0.31% and is trading at 1.1803 level. The Eurozone and Germany have presented CPI reports for April. Markets are also focused on ECB President Mario Draghi’s speech in Frankfurt. Also, the US will publish data on Housing Starts and Building Permits, which are expected to remain unchanged, at 1.32 million and 1.35 million, respectively.

The Eurozone inflation decreased in April, according to preliminary estimates. The final data of Eurostat showed, that CPI slowed to 1.2% in April from 1.3% in March. This rate coincided with the preliminary estimate, published on May 3. On a monthly basis, consumer prices rose by 0.3% in April. Core inflation, which excludes food, alcohol and tobacco, slowed to 0.7% from 1% a month earlier.

Inflation in Germany stabilized in April, as expected earlier. The final data of the statistical office Destatis showed that consumer price index increased 1.6% on an annualized basis in April, the same growth rate that was observed in March, and in accordance with the estimate published on April 30. On monthly basis, the consumer price index remained unchanged at 0.0% in April, after growing by 0.4% in March. The preliminary assessment was confirmed.