Release Explanation: The CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of Inflationary pressures. “It is the most widely used Inflation indicator of Central Banks, Institutions, and Governments. It is used to calculate Cost of Living numbers for Government programs. Each regional Central Bank will have their own CPI Target rate, and each will differ in line with the way they individually want to control the aspects of their own economies,” TheLFB-Forex.com Trade Team said.
TheLFB-Forex.com Trade Desk Thoughts: The German CPI held steady in April, in-line with the preliminary release. Last month, in March, the German CPI fell by 0.1%. “Year-over-year, inflation in Germany rose to 0.7% in April. However, excluding the energy components, inflation is up 1.4% from one year ago” TheLFB-Forex.com Trade Team added.
Forex Technical Reaction: The euro is trading above the neutral pivot point (1.3600), after it gained 50 pips during the overnight session.