Inflation in the Eurozone, as measured by the Harmonized Index of Consumer Prices (HICP), edged higher to 7% on a yearly basis in April from 6.9% in March. This reading came in above the market expectation of 6.9%.

The Core HICP, the European Central Bank's (ECB) preferred gauge of inflation, ticked down to 5.6% in the same period, compared to analysts' estimate of 5.7%. On a monthly basis, the Core HICP came in at 1%, down from 1.3% recorded in March.

Market reaction

The EUR/USD stays under modest bearish pressure following the mixed inflation figures from the Euro area and was last seen trading in negative territory below 1.0970.