Heads up: Germany states’ CPI readings due later today

The estimate is for headline annual inflation to come in at 2.3% in Germany for the month of June. While that looks encouraging, the ECB still can’t relax just yet. In May, core annual inflation is still seen at 3.0% and that remains the key spot to watch in all this.

The data today won’t do much to impact the ECB outlook for July. However, if price pressures prove to be more stubborn in the next two months, it could very well put off a September move as well. So, that is the main thing to be wary about.

Here’s the agenda for today:

• 0800 GMT – North Rhine Westphalia
• 0800 GMT – Hesse
• 0800 GMT – Bavaria
• 0800 GMT – Baden Wuerttemberg
• 0800 GMT – Saxony
• 1200 GMT – Germany national preliminary figures

Do note that the releases don’t exactly follow the schedule at times and may be released a little earlier or later.

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