The July Eurozone consumer price index was + 8.9% year-on-year, up further from the previous June’s + 8.6%. It exceeded the market forecast by 8.7%. The year-on-year rate of change was + 4.0%, which was higher than the market forecast of + 3.9% and the previous June’s + 3.7%. In addition, the preliminary figure of GDP in the euro area in the second quarter was + 0.7% from the previous quarter, up from the previous + 0.5%, and greatly exceeded the market forecast of + 0.2%. On the other hand, the year-on-year rate was + 4.0%, down from the previous + 5.4%, but exceeded the market forecast of + 3.4%. The overall stronger results show a reaction to buying euros.
Inflation and rate hikes will be the focus today, and the EUR is expected to remain easy to buy.