Release Explanation: The CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of Inflationary pressures. It is the most widely used Inflation indicator of Central Banks, Institutions, and Governments. It is used to calculate Cost of Living numbers for Government programs. Each regional Central Bank will have their own CPI Target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.
Trade Desk Thoughts: In October, the German CPI fell -0.2%, in-line with market expectations. This is the third straight month that the CPI has shown deflation, as the high cost of energy, which was responsible for pulling inflation higher, tumbled in the last few months. Year-over-year inflation in Germany reached 2.4%.
Forex Technical Reaction: The euro moved 10 pips at the time of the release, after it fell 60 pips overnight.