German states will be releasing their CPI prints for June today
In May, price pressures declined following a boost in April due to Easter seasonality. For the national release today, the expectation is that we'll see more steady inflation figures with the annual reading expected to hold at +1.4% y/y - similar to May.
The risk for the euro is if price pressures deviate significantly from expectations. If we see a modest fall in CPI, expect markets to start leaning towards the ECB having to introduce more stimulus sooner rather than later. Meanwhile, expect the opposite if we see a modest increase in CPI although I reckon any upside will be limited given the ECB's current dovish stance towards future monetary policy action.
Also, keep an eye out on the Saxony report as it will provide an indication of core inflation before we get the Eurozone release tomorrow.
Here's the agenda for today:
0700 GMT - Saxony
0800 GMT - Brandenburg
0800 GMT - Hesse
0800 GMT - Bavaria
0830 GMT - North Rhine Westphalia
1000 GMT - Baden Wuerttemberg
1200 GMT - Germany national preliminary figures
Do note that the releases don't exactly follow the schedule at times and may be released a little earlier or later.