Justin had fantastic German CPI data on Monday:

• Germany December preliminary CPI +2.6% compared to the expected +2.4% y/y
• For context, it was at 2.7% back in September. Stagflation much?

Ugh.

To underline the jump in inflation, Spain’s December CPI also came in at a faster-than-expected 2.8% (expected 2.6%)

This will cast doubt on the pace of the European Central Bank’s expected rate cut in 2025. Prices are currently around 100 basis points for a cut in 2025. EUR/USD rallied on Monday against all this.

This article was written by Eamonn Sheridan at www.forexlive.com.



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