The EURUSD exchange rate is experiencing significant movement following the release of Germany’s inflation data at 8:00 PM WIB. High inflation rates diminish consumer purchasing power as the prices of goods and services increase at a faster pace than income.
Tonight, the annual inflation rate (YOY) for Germany was reported at 2.6%, exceeding the trading central’s forecast of 2.5% and rising from the previous rate of 2.2%. Meanwhile, the month-over-month (MOM) figure stands at 0.4%, higher than the anticipated 0.3%.
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The better-than-expected annual inflation data signals a positive outlook for Europe’s largest economy. When inflation rates fall below expectations, it typically indicates better price stability, reducing pressure on consumer purchasing power, and fostering long-term economic growth.
This increase has supported the strengthening of the EURUSD pair, as following the data release, the EURUSD rose to a level of 1.0426.
