VIDEO EU inflation data could push EURGBP lower

Bank notes of different currencies

The flash EU inflation rate is due out during the upcoming European session.  Expectation are for 0.9%  YoY. Core Inflation YoY is expected at 1.1% in February.  This number will be carefully watched as bond yields have been up ticking since the beginning of the year.   

The UK  had a core inflation rate reading of 1.4% YoY in January.  However, the BOE has indicated that they did not mean to imply that they would use negative interest rates at their last meeting. 

The inflation and central bank contrast between Europe and the UK has been noticeable in  EUR/GBP.  The pair pushed aggressively lower into February 24th and formed a hammer candle at horizontal support near 0.8600.  Price bounced to resistance on Friday and is waiting for its next catalyst.  The Euro area inflation data may be it. 

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Related tags: EUR Forex GBP CPI

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