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Core Eurozone December HICP rises above consensus- EUR/USD fails to rise

The Eurozone December flash HICP inflation report has just been released. The markets were expecting an increase in the annualised rate, to 2.4% from 2.2%. However, the core rate was forecast to remain unchanged at 2.7%. The actual data has shown a hotter than expected rise in the core, to 2.8% but the non-core annualised rate is as expected, at 2.4%. The EUR/USD was trading close to session highs leading into this data, at around 1.0430. It has not yet reacted on the topside, but the likes of the DAX and the CAC are edging a little lower immediately following this release. The EUR/USD is right now trading at 1.0419

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