German CPI as Expected at 1.7% - 27.7.2012
The single currency was relatively flat today after two days of strong gains against the US dollar. Yesterday the currency pair reached its highest since July 10 – 1.2328, but is trading at the moment around 1.2300, close to the current value of the 20-day moving average. The euro is supported by speculations of more bond purchases by the European Central Bank. Spanish and Italian bond yields dropped from their recent highs. At the same time a preliminary report showed today that consumer prices in Germany rose in July by 1.7%, the same pace was registered in June. The harmonized index grew by 2%.