After good data on the euro zone PMI, at 11:00 am, investors got another positive report on the economy of the Old Continent. According to Eurostat’s preliminary report, consumer inflation in December presented positive growth + 1.1%.
The base results also stronger than forecast
Analysts polled by Bloomberg expected the core inflation year on year will coincide with results of the November (0.8%) – but was ranked at a level of 0.9%. While full inflation index significantly higher than the results from the previous period (1.1% vs. 1.0%, previously 0.6%).
For such dynamic growth primarily is responsible very high inflation in energy products (due to appreciation in oil market), which in December was 2.5% compared to -1.1% in November. Good results were also achieved in services sector and food products.
Despite the good results, EURUSD didn’t react much positively. In the first reaction to the results, quotes declined about a dozen pips. This may, however, have no connection with the overtones of the report (which was still positive) but more with re-test of highs from Tuesday’s session:
