DAX Steady as German CPI Matches Estimate

In the Wednesday session, the DAX is at 13,027, up 0.27% on the day. On the release front, German and eurozone CPI releases matched their estimates. ECB President Mario Draghi will speak at an ECB event in Frankfurt.

German Final CPI dropped to 0.0% in April, down from 0.4% a month earlier. Eurozone inflation indicators also pointed downwards. Final CPI edged lower to 1.2%, down from 1.3% a month earlier. Eurozone Final Core CPI followed a similar trend, dropping from 1.0% to 0.7%. If inflation levels continue to soften, the ECB will have to consider extending its stimulus scheme, which is scheduled to run until September. Germany will release additional inflation numbers on Friday.

Bank of France Governor Francois Villeroy de Galhau raised some eyebrows on Monday after making hawkish comments about ECB interest rates hikes. Villeroy said that the ECB could soon provide additional guidance on the timing of a rate hike. In its last rate statement, the ECB said that any rate hikes would occur ‘well past’ the wrap-up of the stimulus program, which is slated to end in September. Villeroy stated that ‘well past’ could be a matter of quarters, rather than years. Investors snapped up euros on Monday after Villeroy’s comment, but the euro failed to hold onto these gains and ended the Monday session with small losses.

I’m a believer

Italian Politics Pounds Euro

Economic Fundamental

Wednesday (May 16)

  • 2:00 German Final CPI. Estimate 0.0%. Actual 0.0%
  • 5:00 Eurozone Final CPI. Estimate 1.2%. Actual 1.2%
  • 5:00 Eurozone Final Core CPI. Estimate 0.7%. Actual 0.7%
  • 5:35 German 10-year Bond Auction. Actual 0.62%
  • 8:00 ECB President Mario Draghi Speaks

*All release times are DST

*Key events are in bold

DAX, Tuesday, May 16 at 7:00 DST

Prev. Close: 13,014 Open: 12,991 Low: 12,963 High: 13,034 Close: 13,027

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental and macroeconomic analysis, Kenny Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in major online financial publications including Investing.com, Seeking Alpha and FXStreet. Kenny has been a MarketPulse contributor since 2012.