EUR: Constructive EZ Sep CPI release could provide some upside relief - ING

In view of Viraj Patel, Research Analyst at ING, flash EZ CPI data for Sep will be the anchor point for EUR investors today and their economists expect a final month of no change in both headline (1.50%) and core (1.20%) before energy base effects start to push down headline inflation.

Key Quotes

“Watch out for upside surprises in core given that it would be a positive sign that pipeline price pressures are having a faster effect on inflation than initially thought. Under this scenario, EUR/$ could find some upside pressure towards 1.1840 (50-dma). Expect investors to remain cautious, however, ahead of a potential Catalan vote.”