Eurozone Preliminary CPI rises by 0.7% YoY in March, misses estimates – EUR/USD keeps lows

According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at +0.7% in March, meeting expectations of +0.8% and +1.2% previous.

Meanwhile, the core figures arrived at +1.0% in the reported month when compared to 1.2% expectations and +1.2% previous.

Key details (via Eurostat):

“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in March (2.4%, compared with 2.1% in February), followed by services (1.3%, compared with 1.6% in February), non-energy industrial goods (0.5%, stable compared with February) and energy (-4.3%, compared with -0.3% in February).”

The Eurozone inflation report comes a day after the German Prelim CPI data was released, which showed that the German consumer price inflation accelerated by 1.3% YoY in March and moved further away from the European Central Bank’s (ECB) rate target of just under 2 percent for the Eurozone as a whole.

FX implications:

On the data release, the shared currency came under fresh selling pressure, as EUR/USD accelerates decline to print a fresh session low of 1.0974. The spot now targets Friday’s low of 1.0953, with all eyes now on the G20 call on the coronavirus impact and US dollar dynamics.