Current rate – 1.09160
- The Euro traded slightly higher versus other major currencies
- Headline CPI at 0.4%, Core CPI Printing 1.0%
- ECB March policy meeting still in focus
Whilst the numbers today showed a slight acceleration in the Euro-Zone’s inflation, the data came generally in line with expectations, as supposedly technical effects from a drop in oil early last year faded from the 12-month figure. With that being said, the uptick in Core CPI may have been a slight relief for the ECB who are seeing stimulus efforts falling short from their medium-term inflation target of just under 2%. In their latest policy meeting, the ECB opted for status que and kept rates unchanged, but rhetoric by ECB’s President Mario Draghi sent the Euro lower on the perceived possibility of lower rates at the March meeting, when new macroeconomic projections become available. Taking this into consideration, today’s figures were on the positive side, but seemed to do little to sway the market sentiment regarding a possibility for lower rates down the line and the Euro only saw a slight positive reaction.