Today we have the Eurozone CPI Flash Estimate, which is a metric Draghi identified in his last ECB Conference as a tool to inform policy measures. The threat of deflation continues to plague the Eurozone and a poor result today would negatively impact the euro.
Eurozone CPI Flash Estimate 09:00 GMT
- Eurozone inflation showed a slight improvement in April yet still fell short of the estimated 0.8%.
- The consensus for today is a drop on last month’s figure at 0.8%.
- Some economists project that the reading could drop to as low as 0.5%.
- Germany’s inflation slipped to its lowest level in four years yesterday, indicating economic weakness is no longer a ‘peripheral problem’.
- The unemployment rate is expected to remain at 11.8% and there are fears that Italy could push this rate up to a new high.
- Banc de Binary analysts predict that inflation results today will be disappointing, indicating a potential downward movement in the EUR/USD.