Euro area core inflation data likely to confirm flash estimate of 1.1 pct in July

Headline inflation for euro area nations in July confirmed the flash estimates. The EU-harmonized measures of inflation for Germany, France and Spain came in at 2.1 percent, 2.6 percent and 2.3 percent year-on-year, respectively. Similarly, the equivalent Italian data released yesterday showed an unrevised headline rate of 1.9 percent year-on-year on the EU measure.

However, there remains a decent possibility of an upwards revision to the euro ahead headline inflation rate given that the preliminary estimate of 2.149 percent year-on-year came within a whisker of 2.2 percent year-on-year, noted Daiwa Capital Market Research in a report.

“The annual rate of core CPI - arguably of more interest to the ECB as it awaits a sustained uptrend in underlying inflationary pressure - is set to be confirmed at the flash estimate of 1.1%Y/Y”, added Daiwa Capital Market Research. 

At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bearish at -73.856, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 59.8344. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex