Euro Climbs Even as Eurozone Inflation Doesn’t Accelerate

The euro jumped today even though an inflation report from the eurozone was not as good as economists have hoped for. Over a longer term, the currency moves sideways versus the euro and demonstrates bullish bias versus the US dollar.

The eurozone Consumer Price Index rose 0.5 percent in June on an annual basis, at the same rate as in May. Analysts have expected inflation to accelerate to 0.6 percent. The European Central Bank conducts a monetary policy meeting on Thursday (May 3). It is expected that this month the ECB will not shock the market (as it has done in June by implementing negative interest rates) and leave monetary policy and the level of stimulus unchanged.

EUR/USD jumped from 1.3643 to 1.3692, and EUR/JPY climbed from 138.34 to 138.68 as of 19:57 GMT today after dropping to the daily low of 138.10.

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