{"id":391891,"date":"2026-01-06T14:37:08","date_gmt":"2026-01-06T14:37:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/391891\/"},"modified":"2026-01-06T14:37:08","modified_gmt":"2026-01-06T14:37:08","slug":"germany-december-preliminary-cpi-1-8-vs-2-1-y-y-expected","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/391891\/","title":{"rendered":"Germany December preliminary CPI +1.8% vs +2.1% y\/y expected"},"content":{"rendered":"<p>Prior +2.3%HICP +2.0% vs +2.2% y\/y expectedPrior +2.6%Core CPI Y\/Y 2.4% vs 2.7% priorFull report <a href=\"https:\/\/www.destatis.de\/EN\/Press\/2026\/01\/PE26_002_611.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" class=\"article-link\" data-v-4026719d=\"\">here<\/a><\/p>\n<p data-v-4026719d=\"\">Big downside surprise in German inflation figures. We had the German states readings earlier in the session which pointed to softer national CPI. The Core CPI Y\/Y fell to 2.4% in December vs 2.7% in November.<\/p>\n<p>Germany Core CPI YoY<\/p>\n<p data-v-4026719d=\"\">The market reaction has been limited given that we already expected softer figures after the <a href=\"https:\/\/investinglive.com\/news\/german-states-see-softer-headline-inflation-readings-in-december-20260106\/\" target=\"_blank\" class=\"article-link\" data-v-4026719d=\"\" rel=\"nofollow noopener\">German states data<\/a>. In terms of monetary policy, the data doesn&#8217;t change anything for the ECB. The central bank is comfortably in neutral stance and has already stated many times that it won&#8217;t react to small or short-term deviations from its 2% target.<\/p>\n<p data-v-4026719d=\"\">The market doesn&#8217;t expect any policy move from the ECB this year with just 2 bps of tightening priced in by year-end.<\/p>\n<p>EURUSD &#8211; 1 hour<\/p>\n<p data-v-4026719d=\"\">On the 1 hour chart above, we can see that EURUSD bounced following the German CPI data in what could be called a classic &#8220;buy the rumor, sell the fact&#8221; reaction. The price action has been confined between the support zone around the 1.1660 level and the downward trendline.<\/p>\n<p data-v-4026719d=\"\">The sellers will likely continue to lean on the trendline with a defined risk above it to keep pushing into new lows, while the buyers will need a break above the trendline to open the door for a rally into the 1.18 handle.<\/p>\n","protected":false},"excerpt":{"rendered":"Prior +2.3%HICP +2.0% vs +2.2% y\/y expectedPrior +2.6%Core CPI Y\/Y 2.4% vs 2.7% priorFull report here Big downside&hellip;\n","protected":false},"author":2,"featured_media":276169,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":{"0":"post-391891","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/391891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=391891"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/391891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/276169"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=391891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=391891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=391891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}