# Euro Looks for Direction on Red-Hot Inflation Ahead of ECB Meeting

> Eurostat data showed euro-zone annual inflation rose to 3% in August from 2.2%, the highest since 2011, and core inflation reached 1.6%. Germany's headline rate hit 3.4%, and the euro was trading on the data ahead of the September 9 ECB meeting.

- Date: 2021-08-31 · published 2021-08-31T12:00:00.000Z
- Category: macro · region Eurozone · magnitude low
- Page: https://feedsoft.ai/events/45764-euro-looks-for-direction-on-red-hot-inflation-ahead-of-ecb-meeting
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher inflation raises the odds of ECB policy tightening, which tends to strengthen the euro and weigh on dollar commodity prices. Feed buyers face the currency effect rather than a direct supply change.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-03-10 | [Best day in 5-years for EUR/USD ahead of the March ECB meeting](https://feedsoft.ai/events/9525-best-day-in-5-years-for-eur-usd-ahead-of-the-march-ecb-meeting.md) | -0.7% | -1.4% |
| EURUSD | 2021-09-17 | [Euro-Dollar Rate Heavy Despite Leaked ECB Inflation Forecasts](https://feedsoft.ai/events/45270-euro-dollar-rate-heavy-despite-leaked-ecb-inflation-forecasts.md) | -0.2% | -1.4% |
| EURUSD | 2021-09-09 | [Euro inches higher ahead of ECB decision on bond buying - Markets - Business Recorder](https://feedsoft.ai/events/45271-euro-inches-higher-ahead-of-ecb-decision-on-bond-buying-markets-business.md) | -0.1% | -2.3% |
| EURUSD | 2017-09-07 | [ECB cites inflation-dampening euro rate as policy factor](https://feedsoft.ai/events/69161-ecb-cites-inflation-dampening-euro-rate-as-policy-factor.md) | -0.4% | -1.5% |
| EURUSD | 2024-04-30 | [Euro-Dollar: Inflation, GDP Data Prompts Hawkish Rethink of ECB Rate Outlook](https://feedsoft.ai/events/30941-euro-dollar-inflation-gdp-data-prompts-hawkish-rethink-of-ecb-rate-outlook.md) | +0.6% | +1.5% |
| DXY | 2022-03-10 | [Best day in 5-years for EUR/USD ahead of the March ECB meeting](https://feedsoft.ai/events/9525-best-day-in-5-years-for-eur-usd-ahead-of-the-march-ecb-meeting.md) | +0.2% | -0.5% |
| DXY | 2021-09-17 | [Euro-Dollar Rate Heavy Despite Leaked ECB Inflation Forecasts](https://feedsoft.ai/events/45270-euro-dollar-rate-heavy-despite-leaked-ecb-inflation-forecasts.md) | +0.2% | +0.7% |
| DXY | 2017-09-07 | [ECB cites inflation-dampening euro rate as policy factor](https://feedsoft.ai/events/69161-ecb-cites-inflation-dampening-euro-rate-as-policy-factor.md) | +0.2% | +1.6% |

## Sources

- fxdailyreport.com: https://fxdailyreport.com/euro-looks-for-direction-on-red-hot-inflation-ahead-of-ecb-meeting/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.