Euro CPI Displays ‘Wall of Fear’ over Power Costs

Eurozone CPI Speaking Factors:

  • Eurozone inflation highlights issues over the vitality sector
  • Eurozone CPI in keeping with expectations whereas the inflation charge (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 charge (YoY) rising to three.4%

Go to the DailyFX Educational Center to find how CPI data affects currency pairs

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

DailyFX Economic Calendar

With rising vitality 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 customers.

Following on from final month’s ECB assembly, the European Central Bank (ECB) has recommended {that a} discount within the Pandemic Emergency Buy Program (PEPP) could also be anticipated within the foreseeable future. Because the ECB prepares for the following assembly on 6 October 2021, give attention to rising vitality costs is more likely to stay a key focus for each customers and traders alike.

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

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 worth 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 following few weeks, worth motion will seemingly stay intently linked to the actions undertaken by each the Federal reserve and the European Central Financial institution within the struggle in opposition to inflation.

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

Contact and observe Tammy on Twitter: @Tams707

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