EUR soars, guided by rise in core inflation figures – ANZ

In view of analysts at ANZ, FX markets were buoyed by European July core inflation rising from 1.1% to 1.2% y/y, which helped send EUR soaring (mind you, the weaker USD also played a role).

Key Quotes

“The data (together with unemployment data) provides some grounds for optimism and arguably confirms that deflationary pressures are receding. But it still remains some way off target and the rise is in no small part down to the ECB's extraordinary monetary policies. Whilst the data is encouraging, we remain of the view that the ECB will be very slow to change policy.”