Italian Inflation Figures Have a Muted Impact on the EUR ahead of U.S Jobless Claims

Finalized inflation figures from Italy were in focus through the early part of the European session.

Italian Consumer Prices

Consumer prices rose by 0.1% in June, according to finalized figures, which was in line with prelim numbers. In May, consumer prices had stalled, month-on-month.

Italy’s annual rate of inflation held steady at 1.3%, which was also in line with prelim figures.

According to istat.it,

• The stable annual rate of inflation was attributed to regulated and non-regulated energy prices.
• Regulated energy prices accelerated from +16.8% to +16.9%, with non-regulated ones from +12.6% to +12.8%.
• Prices for processed food, including alcohol, saw prices fall at a more modest rate. In June prices fell by 0.4%, year-on-year, compared with a 1.1% drop in May.
• There was also a pickup in services related to recreation, which went from null to +1.0%.

Market Impact

Ahead of today’s inflation figures, the EUR had fallen to a pre-stat and current day low $1.18214 before rising to a pre-stat and current day high $1.18466.

In response to today’s production figures, the EUR fell to a post-stat low $1.18330 before rising to a post-stat high $1.18391.

At the time of writing, the EUR was up by 0.01% to $1.18378.

Next Up

The weekly jobless claim figures from the U.S, which are due out alongside manufacturing data from NY State and Philly.

Later in the day, U.S industrial production figures are also due out.

With FED Chair Powell delivering day 2 of testimony later tonight, a marked slide in claims would make it interesting…