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Finalized Inflation Figures for the Eurozone Delivers Little EUR Support

By:
Bob Mason
Published: Jun 17, 2021, 09:18 UTC

Finalized inflation figures for the Eurozone failed to deliver a EUR boost. The EUR remains under pressure following the FOMC's more hawkish outlook on policy.

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In this article:

It was a quiet start to the day on the economic calendar, with stats limited to finalized inflation figures for the Eurozone.

In May, the annual rate of inflation accelerated from 1.6% to 2.0%, which was in line with prelim numbers. Consumer prices increased by 0.3% in the month of May, which was also in line with prelim figures. In April, consumer prices had risen by 0.6%.

According to Eurostat,

  • The lowest annual rates were registered in Greece (-1.2%), Malta (-0.2%), and Portugal (0.5%).
  • Luxembourg (+4.0%) registered the highest annual rate of inflation.
  • In May, the highest contribution to the annual euro area inflation rate came from energy (+1.19 pp).
  • There were also strong contributions from services (+0.45 pp), non-energy industrial goods (+0.19 pp), and food, alcohol, & tobacco (+0.15 pp).

Market Impact

Ahead of the trade data, the EUR had risen to a pre-stat and current day high $1.20063 before falling to a pre-stat and current day low $1.19361.

In response to the inflation and trade data, the EUR slipped to a post-stat low $1.19470 before rising to a post-stat high $1.19533.

At the time of writing, the EUR was down by 0.35% to $1.19529.

EURUSD 170621 Hourly Chart

Next Up

U.S weekly jobless claims and Philly FED Manufacturing numbers for June.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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