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Lower than forecast German CPI pressures the EUR/USD as much as it lifts the DAX

Following on from the previous update noting the bulls being in control of the DAX price action, the index has now extended its gains to above 16,170. The main reason for the charge higher comes from a whole batch of regional German CPI data. That has shown some significant annualised falls across a number of German regions. This is turn is adding upside in the German Bunds. At the same time that is adding opposite pressure onto the Euro. So, we have a shift in the more usual dynamic right now between the EUR/USD and the DAX. Having said that, the EUR/USD has not broken any fresh ground yet, but it edging lower again after an earlier rebound from a low at 1.0976, stalled ahead of the 1.10 handle
 

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