According to the European Central Bank’s (ECB) monthly survey of consumer expectations for inflation, inflation expectations among Eurozone consumers extended its downbeat momentum in June.

Additional takeaways

“Inflation over the next 12 months seen at 3.4% vs. 3.9% projected in May.”

“Inflation three years ahead seen at 2.3% vs. 2.5% seen in May.”

“Expectations for nominal income growth over the next 12 months remained unchanged, while expectations for nominal spending growth declined further.”

“Expectations for economic growth over the next 12 months became slightly less negative, while the expected unemployment rate in 12 months' time was unchanged.”

“Expectations for growth in the price of homes over the next 12 months remained unchanged, while expectations for mortgage interest rates 12 months ahead decreased slightly.”

Market reaction

EUR/USD is testing intraday lows near 1.0970 on the release of the above survey findings. The pair is currently trading at 1.0972, down 0.25% on the day.