The rate of inflation in the eurozone has been at 2.4% for 3 months in a row. This is the lowes rate of inflation since February 2011.
Lower purchasing power caused by the eurozone crisis and Europeans’ thriftiness are the major reasons why the rate of inflation is stable. Energy and food prices are still stable. It seems like the consequences of the recent droughts haven’t still affected the prices.
According to Mario Draghi, ECB President, the eurozone rate of inflation is under control. There are no major inflation risks in Europe right now, he says. In July, consumer prices declined by 0.5% (m/m).
Forex.
According to , the Euro currency keeps trading in the 1,2443-1,2255 price range against the US Dollar.
A rally will probably encounter resistance around 1,2441. A bearish move will occur as soon as the price overcomes the bottom of the MF sloping channel and consolidates below 1,2255 (as shown below).
