| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 09:00 | Eurozone | Unemployment Rate | February | 6.5% | 6.4% | 6.5% |
| 09:00 | Eurozone | Harmonized CPI, Y/Y | March | 2.6% | 2.6% | 2.4% |
| 09:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | March | 3.1% | 3% | 2.9% |
EUR traded flat and mixed against other major currencies in the European session on Wednesday as investors digested the Eurozone’s preliminary inflation data for March, which cemented the case for a June cut in the European Central Bank’s interest rates.
The single European currency inched up versus JPY, CHF, AUD, and CAD but edged down versus USD and GBP.
Eurostat reported its preliminary estimates showed that consumer prices in the euro area rose 2.4% YoY in March, decelerating from 2.6% YoY in February. Economists had forecast a gain of 2.5% YoY for March. Meanwhile, the core consumer prices, which exclude volatile items such as food and energy, also increased less than anticipated - by 2.9% YoY compared to economists’ prediction of 3.0% YoY and February’s reading of 3.1% YoY. This marked the weakest annual advance in core prices since February 2022 (+2.7% YoY).
The Eurozone’s March inflation report added to evidence that the ECB is on track to bring price pressures in the region back to the 2% goal, allowing it to ease soon the current tight monetary policy stance aimed at combating inflation.
Most of the ECB’s policymakers, including its president Christine Lagarde, have indicated that the first rate reduction is likely to come in June. Money markets and economists also see June as the most likely time for an initial rate cut by the ECB - ahead of the U.S. Federal Reserve and Bank of England.