According to the preliminary report published by Eurostat, the Eurozone’s consumer prices grew by 0,2% in December 2015 (y/y). Experts had expected a 0.3% increase, which means that the actual figures failed to come up to the expectations.
At the same time, Masterforex-V Academy reminds you that that energy carriers continued the same bearish tendency in December by depreciating by 5,9% after seeing a 7,3% drop in November. At the same time, the biggest price growth was shown in foodstuffs, alcohol and tobacco. They gained 1,2% in December after seeing a 1,5% increase in November.
With that being said, Core CPI was only equal to 0,9%, which leads us to believe that the current inflation target set by the ECB is still far away from the actual readings. The Eurozone has been trying to hit the inflation target over the last 2 years but has been unsuccessful so far in doing so. Even the interest rate cuts and QE started by the ECB in order to stimulate the European economy and inflation have been failing to reach the desired results. As far as QE is concerned, Mario Draghi say that it is going to take place at least for the next 6 months.
FOREX
In the meantime, Masterforex-V Academy reports that the common European currency is still trading against the U.S. Dollar within the scope of a pretty wide price range – between 1,0523 and 1,1058. Those boundaries are now acting as the closest levels of support and resistance and are expected to determine the direction of the next near-term momentum once they are broken and consolidated above.
