Today’s CPI figures out of Germany are set to have some market impact despite investor focus being firmly on Ukraine. Economists at ING expect the EUR/USD pair to stay above 1.12 amid high inflation data from Germany.

German inflation in focus

“We expect to see a rise in February’s German headline inflation to 5.1%, in line with expectations, which may offer some support to the euro as markets may at least cement their pricing for a September ECB hike after having re-priced the timing for policy tightening in the past weeks.”

“We expect evidence of accelerating inflation to help EUR/USD hold on to the 1.1200 level for now, although sanctions/retaliation and rising commodity prices still suggest a downward-tilted balance of risk for the pair.”