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Weak Data Saps EUR But Expect A Pullback To 1.28 - Credit Agricole

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Three data releases weighed on EUR overnight: ZEW, industrial output and inflation. First, the German ZEW collapsed, dropping to 3.2 from 25.4 vs. 15.0 expected – a three standard deviation miss. At the same time the forward looking expectations component fell for the first since 2012. Second, EZ industrial output also missed expectations. More worrying, German weakness drove the headline miss. Third, inflation data from Spain, Italy and France also missed expectations. Also in response to the Reported by FXstreet.com 3 hours ago.

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