The eurozone core inflation print came in as expected at 3.8% (see calendar below) for the month of May which bolstered euro upside post-release after a negative start to the European trading session. We can expect this to continue to rise as crude oil and natural gas supply continues to be constrained leaving the eurozone in a tricky situation. The euro is by no means reversing the longer-term downtrend thus heightening inflationary pressures giving the ECB more to think about as it grapples with widening bond spreads and a fading euro.
