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The Euro Area Inflation Rate rose about 7.5% YoY with previously 5.9% and above the forecast of 6.6%. Energy food, alcohol & tobacco costs rose the most. Excluding energy the rate increased 3.4%. The inflation is well above the 2% ECB target, giving potential hints to interest rate hikes while the pandemic stimulus keeps going on, driving prices higher by demand in combination with the mentioned rising energy costs.
The euro fell against the dollar 0.8% by the Quarter’s VWAP and was pressured by the higher inflation data from France and Italy in yesterday’s trading session already, giving the fiber currency still a bearish tendency.
The monthly was hitting swing lows back from 2020, giving support for a potential bullish cycle change.
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