German Prices in Minor Contraction

Preliminary data out of Germany this morning showed a possible contraction in consumer prices as they are measured by the Consumer Price Index (CPI). Expectations were not terribly high to begin with for this reading, but a turnout of negative 0.1% may push traders out of the risk-taking sentiment they had adopted last Friday.

The last time German prices turned bearish was in late-January 2011 amid a broad spike in EUR values. Fundamentals out of the euro zone have painted a rather ominous picture, though the EUR did see an upswing last Friday and this morning. Will this data offset those gains?

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