Eurozone July preliminary CPI +2.6% vs +2.5% y/y expected

• Prior +2.5%
• Core CPI +2.9% vs +2.8% y/y expected
• Prior +2.9%

The more important statistic is the core reading, and that is unchanged from June. The disinflation process in the euro area is still taking some time to progress further and that’s not helping the ECB to gain more confidence for now. We’ll see what August has to offer next but for now, a September rate cut isn’t exactly a given just yet. Traders are seeing a ~67% probability of a rate cut, little changed from the ~68% probability earlier in the day.

This article was written by Justin Low at www.forexlive.com.