| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 09:00 | Eurozone | Harmonized CPI | June | 0.2% | 0.2% | 0.2% |
| 09:00 | Eurozone | Harmonized CPI, Y/Y | June | 2.6% | 2.5% | 2.5% |
| 09:00 | Eurozone | Unemployment Rate | May | 6.4% | 6.4% | 6.4% |
EUR weakened slightly against other major currencies in the European session on Tuesday as investors weighed mixed flash inflation data from the Eurozone for June.
Eurostat reported this morning that its preliminary estimates showed the euro area’s consumer price index (CPI) rose 2.5% YoY in June, decelerating from 2.6% YoY in May. The print matched economists’ forecasts. Meanwhile, the region’s core CPI, which excludes food and energy costs, increased 2.9% YoY, the same pace as in the previous month. Economists had predicted the core measure to ease to 2.8% YoY in June.
June’s CPI data had little impact on markets’ rate cut bets. They still expect two more rate reductions from the ECB this year.
Also, investors continued to digest the outcomes of the first round of voting of the weekend’s snap parliamentary elections in France, which granted a victory for the far-right National Rally (RN) with the largest share of the votes (33.2%), but less than many had initially anticipated.
Another important factor influencing the euro’s performance remains yesterday’s comments of the European Central Bank president Christine Lagarde, who indicated that the ECB’s policymakers are not in a rush to decrease interest rates further as they need time to assess inflation uncertainties. “It will take time for us to gather sufficient data to be certain that the risks of above-target inflation have passed,” she noted.
Lagarde will speak also today at 13:30 GMT.