With many key Eurozone economic indicators turning lower recently, it wasn’t too surprising yesterday to see the final CPI reading for November coming in weaker than expected. While core CPI came in unchanged at 1% year on year, the headline reading fell to 1.9% from the prior 2% initially estimated.
The monthly figures were weak also with headline CPI falling 0.2% over the month, down sharply from the prior month’s 0.2% increase. Meanwhile, core CPI fell 0.3% on the month, below the expected 0.2% decrease.
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Key Quotes From The Eurostat Report
The report from Eurostat stated:
“The lowest annual rates were registered in Denmark (0.7%), Ireland (0.8%) and Portugal (0.9%). The highest annual rates were recorded in Estonia, Hungary, and Romania (all 3.2%). Compared with October 2018, annual inflation fell in twenty-five Member States, remained stable in one and rose in one.
In November 2018, the highest contribution to the annual Euro-area inflation rate came from energy (+0.88 %), followed by services (+0.57 %), food, alcohol & tobacco (+0.38 %) and non-energy industrial goods (+0.11%).”
After piercing below the trend line support of the local contracting triangle pattern, EURUSD has since traded back up into the pattern. If the move continues, there is plenty of resistance ahead which could slow bulls down with the triangle resistance line just above and over that, a few key structural resistance levels at 1.1442, 1.1474 and 1.1499.