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Single Currency Now Among G10 Best Performers as CPI Tops Forecast

EUR
  • EUR rises to touch fresh session highs against USD, GBP following the higher-than-expected CPI data, with Bund futures also briefly dipping lower to touch 168.75 before recovering.
  • Move higher in EUR and EGB yields possibly tempered by already-released German, Spanish and French inflation figures pointing to a hot inflation release today. German, Spanish, French CPI came in 0.9, 0.6 and 0.4ppts above consensus respectively.
  • As such, the primary driver for today's upside surprise looks to be Italian CPI, higher by 1.3ppts vs. expectations.

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