German inflation data came out almost exactly as expected yesterday, as the Consumer Price Index (CPI) figures were reported to be 0.3%. The single currency did not see any great movement against sterling, but continued to lose ground against the US dollar in response to a host of stronger data coming from the other side of the “pond”.
Further inflation figures are due out today in the form of the Flash CPI July estimate for the Eurozone at large. These figures are forecast to come out at around the 0.5% mark and have the potential to affect rate movements if different from expectations. Additionally, we expect an array of slightly less influential data sets from the Eurozone, including Eurozone unemployment figures. These indicated a level of 11.6% when released last month and are expected to remain around this level. Unemployment is another key indicator of the health of the economy and the Eurozone figures have remained well above those of the USA and the UK for some time due to the high levels of unemployment in its southern states.