EUR Finds Support after Finalized Member State Inflation Figures

It was a busier start to the day on the Eurozone economic calendar today. Finalized March inflation figures for France, Germany, and Italy were in focus.

Inflation

Germany

In Germany, consumer prices increased by 0.5% in March, which was in line with prelim figures. In February, consumer prices had risen by 0.7%. The annual rate of inflation accelerated from 1.3% to 1.7%, which was also in line with prelim figures.

According to Destatis,

• The prices of services were up 1.6%, with prices of goods rising by 1.9% when compared with a year earlier.
• Energy product prices were 4.8% higher than a year earlier, with food prices up by 1.6% compared with March 2020.

France

From France, consumer prices were also on the rise, with the annual rate of inflation picking up from 0.6% to 1.1%, which was in line with prelim figures. Month-on-month, consumer prices rose by 0.6% in March.

According to Insee.fr,

• Year-on-year, service prices ticked up from 0.8% to 1.1%, with deflationary pressures for manufactured goods softening from -0.4% to -0.2%.

Italy

In Italy, the annual rate of inflation saw a more modest uptick from 0.6% to 0.8%, which was also in line with prelim figures. Month-on-month, consumer prices increased by 0.6% in March.

Market Impact

Ahead of the inflation figures, the EUR had fallen to a pre-stat low and current day low $1.19699 before finding support. Through the morning, the EUR bounced back to strike a pre-release high $1.19780.

In response to the stats, the EUR fell to a post-stat low $1.19726 before rising to a post-stat and current day high $1.19902.

At the time of writing, the EUR was up by 0.02% to $1.19819.

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