This morning’s release of CPI figures from the Eurozone was an unexpected and welcome surprise for Euro bulls. According to Eurostat, May’s personal inflation or CPI reading, though preliminary, rose to 0.3% against expectations of a rise to 0.2% from 0.0% in April. Core inflation, which excludes volatile components such as fuel and food, rose to 0.9%, besting expectations of a rise to 0.7% from April’s 0.6% reading. That suggests to investors that the European Central Bank’s efforts may finally be working which would give Mario Draghi some breathing room.

As reported at 12:04 pm (BDT) in London, the EUR/USD was trading at $1.1126, slipping from a session peak of $1.1194 yet well off the session trough set at $1.0914. The EUR/JPY was higher at 138.2470 Yen, a gain of 1.44%, while the EUR/GBP gained 1.12% to trade at 0.7268 Pence.

Greek Situation Still Weighs

Analysts point out that in the absence of any further positive drivers, the Euro will remain under some pressure, especially given the uncertainty of the Greek debt situation. Though talks among the Greek government and its creditors have continued, there has been little progress, however investors seem to be taking that in stride.