The monthly consumer price index data for Germany showed that inflation was weaker in November. Headline CPI for Germany was down 0.8% on the month in November. This was more than the forecasts of a 0.5% decline estimates given by economists. On a year over year basis, German CPI is up 1.1% however but below the median estimates of a 1.3% increase. Lower energy prices were attributed to the weakness in the headline inflation.
EUR/USD Holds on to Support Firmly
The common currency recovered from the slump on Wednesday, but price action is still near the support level of the 1.1000 region. With the US markets partly open today, we could expect to see a flat close into the weekend. The prospects of a rebound come into the picture only when EUR/USD can breakout above the local pivot high of 1.1020.
