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.
Trade Desk Thoughts: The German CPI rose by 0.6% in February, in-line with the preliminary release. Last month, in January, the German CPI fell 0.5%, and was up 0.9% from one year earlier. On the other hand, year-over-year inflation in February reached 1.0%, dragged lower by the huge declines seen in the energy market.
Forex Technical Reaction: The euro surged 100 pips in the Asian session, up to TheLFB R1 (1.2690)