German CPI
Earlier today during the London session, the German consumer price index, which helps in calculating the price movements by the comparison between the retail prices of a representative shopping basket of goods and services was published by the Statistiches Bundesamt Deutschland. The market was expecting no change in the CPI in August 2015, compared to the preceding month. The outcome was in line with the forecast, and was similar to the last reading.
Considering the yearly change, then the German consumer price index increased by 0.2%, just as the market expected.
The report stated that the “low inflation rate of August 2015 was due mainly to the continued decrease in energy prices (–7.6% on August 2014). Compared with the last few months, the decrease of energy prices accelerated again”.
Overall, there was no encouragement for buyers, but the Euro remained in the bullish zone. Similarly, the Spanish Consumer Price Index was released by the National Institute of Statistics, which was also in line with the forecast.
Technical Analysis – EURUSD
The Euro was seen trading higher from the past couple of days, but struggled to clear an important resistance area of 1.1300-20. There were at least three attempts today to clear the mentioned area, but sellers managed to defend the upside successfully. It has increased the risk of a move down in the near term. On the downside, an initial support is around 1.1260, followed by 1.1220.
