Price pressure in the Euro-Zone increased 0.4% in February, which raised the headline reading to1.2% from a 10-year low of 1.1% in January, while the core rate of inflation, which excludes volatile items such as food and energy, accelerated to 1.7% from 1.6 in the previous month.
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[B]EURUSD[/B] – Price pressure in the Euro-Zone increased 0.4% in February, which raised the headline reading to1.2% from a 10-year low of 1.1% in January, while the core rate of inflation, which excludes volatile items such as food and energy, accelerated to 1.7% from 1.6 in the previous month. Meanwhile, a separate report showed that the labor market in the euro-region contracted at a record pace in the fourth quarter as employment slipped another 0.3% during the three-months through December after dropping 0.1% in the third quarter, which lower the annual rate to 0.0% from a revised reading of 0.6%. Despite the minor uptick in inflation, price growth in the Euro-Zone remains well below the 2% target held by the ECB, and as the central bank holds a dour outlook for growth and inflation, policy makers are likely to employ all of their available tools in an effort to soften the landing of the economy. Discuss the topic and your trade ideas in the EUR/USD Forum.
