Euro higher after CPI figures
The euro is trading at $1.3656; it made a small advance after the consumer price index for the region came in at 0.5% for June and no change on the month, which was in line with expectations. Interestingly, core inflation ticked up to 0.8% from 0.7%.
The latest CPI report from the eurozone will give Mario Draghi the excuse to not announce additional monetary easing at Thursday’s meeting however, I do foresee him hinting at more easing in the future. Ideally, the European Central Bank president would be able to talk the currency down rather than use the tools available to him.
The euro may drift towards the 200-day moving average of $1.3688 between now and the ECB meeting on Thursday at 1.30pm (London time). The downward pressure on the euro is likely to kick in towards the end of the week and it could target $1.3575.