The latest inflation report from Germany showed that consumer prices rose 1.3% on the year ending May 2019. This was well below the ECB’s 2% inflation target rate. On a monthly basis, Germany’s inflation was up just 0.3%. The weakness in inflation is starting to build up expectations that the ECB will follow through with policy easing in July.
EURUSD Trades Flat Within Range
The currency pair was seen trading flat within the 1.1400 and 1.1339 level on Thursday. The consolidation within this range indicates a potential breakout in the near term. The bias remains mixed. A breakout above 1.1400 will confirm further upside bias while a close below 1.1339 could trigger a deeper correction in the EURUSD. We expect the EURUSD to test the next lower support at 1.1250 in such an event.
