Published at 8:00 GMT data about June consumer inflation in Germany and Spain strengthened EURUSD. Pair reached new session highs, feeling more confident above 1.1400. Last time price was that high a year ago.

Interesting reaction of EURUSD

EURUSD reaction for data can be confusing. CPI YoY slowed down from 1.9% to 1.5% (expected 1.6%) and HICP decreased from 2.0% to 1.6%. The only solution to explain bullish reaction is fact that analysts expected stronger depreciation.

Gains could also be influenced by news about German local inflation. CPI in Saxony in June was 1.7% YoY (prior 1.6%) and on monthly basis it rebounded from negative values (0.2% vs -0.1% prior).

At the moment of publication of both indicators Eurodollar gained about 20 pips, continuing appreciation in the next minutes. It helped reaching session high and stay above 1.1400:

EURJPY also doesn’t want to stop its rally – pair has third bullish session in a row, testing level observed last time in the beginning of the year:

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