Euro area annual inflation is expected to be 1.3% in June 2017, down from 1.4% in May 2017, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in June (1.9%, compared with 4.5% in May), followed by services (1.6%, compared with 1.3% in May), food, alcohol & tobacco (1.4%, compared with 1.5% in May) and non-energy industrial goods (0.4%, compared with 0.3% in May).
The euro shot to one-year highs after Tuesday's speech by European Central Bank President Mario Draghi bolstered expectations that a reduction in stimulus measures would be signaled as soon as September. The dollar has fallen because of “doubts in the Fed raising rates again this year, the uncertain fate of Trump’s agenda, and number three has been how the global economy has been playing catch up to the U.S.,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
