EU inflation beats consensus estimates but EUR/USD doesn't react
EU CPI comes in slightly higher than expectations of 0.9% to print at 1.0% for November.
The ECB have constantly said their target for inflation remains near 2% and this increase will be welcome as it would vindicate some of their recent policy measures. In the report it was noted food, alcohol & tobacco is expected to have the highest annual rate in November (2.0%, compared with 1.5% in October), followed by services (1.9%, compared with 1.5% in October), non-energy industrial goods (0.4%, compared with 0.3% in October) and energy (-3.2%, compared with -3.1% in October).
Unsurprisingly EUR/USD failed to react to the news as a wider theme remain in focus for now. The only things that seem to move the currency pair are points that lead to the probability of rate hikes or cuts being changed.
On a broader not today is month-end and positioning by large corporates and banks are set to dominate. Later in the session at 17.50 London time we are expecting to hear from ECB's de Guindos who may comment on today's developments.