EUR flows: EUR edges lower on softer data

EUR data coming in on the soft side, with German state CPIs showing a marginally larger decline in the y/y rate in December than expected, while a big downward revision in Italian services PMI leading to a modest downward revision in Eurozone PMI. EUR/USD is a little weaker in response, with EUR yields also a tough softer, although there is still no significant expectation of any ECB easing being priced into the curve, with a cut by the end of the year seen as around a 15% chance.