European inflation data surprises everyone...the dollar takes off and the euro falls

Inflation data for the Eurozone has now been released, giving an overview of the European Central Bank's monetary policy directions, as it is one of the most important factors that contribute to interest pricing.

The euro zone's headline consumer price index for August on an annual basis was 5.3%, while experts expected a rise of only 5.1%, and the previous reading recorded 5.3%.

On a monthly basis, the consumer price index for the euro zone recorded an increase of 0.6%, after declining in the previous reading by 0.1%, as experts expected it to rise by only 0.4% in August.

Looking at the fundamental data that excludes food and energy, the core CPI on an annual basis for the euro area was 5.3%, in line with expectations, while the previous reading was 5.5%.

On a monthly basis, the core CPI for the Eurozone in August rose by 0.3%, while the previous reading was -0.1%.

Markets immediately after the data is released

The Euro has now fallen significantly against the US Dollar, falling by just 0.5%, to 1.0875.

The US dollar index now stands at 103.442 against a basket of foreign currencies, up by about 0.35%.

While gold futures fell by 0.09% to $1,971 per ounce.

Spot gold contracts rose by 0.11% to $1,944 per ounce.

Inflation data for the Eurozone has now been released, giving an overview of the European Central Bank's monetary policy directions, as it is one of the most important factors that contribute to interest pricing.

The euro zone's headline consumer price index for August on an annual basis was 5.3%, while experts expected a rise of only 5.1%, and the previous reading recorded 5.3%.

On a monthly basis, the consumer price index for the euro zone recorded an increase of 0.6%, after declining in the previous reading by 0.1%, as experts expected it to rise by only 0.4% in August.

Looking at the fundamental data that excludes food and energy, the core CPI on an annual basis for the euro area was 5.3%, in line with expectations, while the previous reading was 5.5%.

On a monthly basis, the core CPI for the Eurozone in August rose by 0.3%, while the previous reading was -0.1%.

Markets immediately after the data is released

The Euro has now fallen significantly against the US Dollar, falling by just 0.5%, to 1.0875.

The US dollar index now stands at 103.442 against a basket of foreign currencies, up by about 0.35%.

While gold futures fell by 0.09% to $1,971 per ounce.

Spot gold contracts rose by 0.11% to $1,944 per ounce.