It’s all about the core baby and the fact it’s steadied has given the euro enough ammo to break higher. EUR/USD is up to 1.3778 from the 1.3725 low it posted on the release. The driver has been EUR/JPY which fell to 141.50 on the data and then smashed up through the 142 level to 142.25.
USD/JPY has been pulled along too up to 103.26 and the data has also given EUR/CHF a lift into 1.22.
The headline number looks ugly at 0.5% but the ECB has bought itself some time with the core number and I expect Mr Draghi to lead with point at the ECB announcement presser on Thursday.