Euro area headline inflation likely to have slowed marginally in June

The euro area headline inflation is expected to have slowed marginally in June. According to consensus expectations, the consumer price inflation in the currency bloc is expected to have come in at 1.3 percent year-on-year, a slight deceleration from May’s print of 1.4 percent.

The euro area economy continues to grow and there are certain signs of it losing momentum in the near term, noted Wells Fargo in a research report. The flash manufacturing PMI for June for the currency bloc came in at 57.3, which is the most rapid rate of growth in six years. Despite indication of a strengthening economic outlook, the European Central Bank provided only modest changes to its policy guidance in June. This might be due to a puzzling situation that is not unique to Europe, stated Wells Fargo.

At 23:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 34.7924, while the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -62.388. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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