EUR flows: EUR firmer but Eurozone CPI data net neutral

While French and Spanish CPI were both on the soft side of consensus, German state CPIs are mostly somewhat stronger than expected, suggesting upside risk to the consensus for a 2.1% national CPI number later. Even so, the net impact on ECB policy is likely zero, given their determinedly neutral stance expressed in the account of the last meeting published yesterday. The EUR has managed some gains since the release of the German state CPI data, but given the lack of movement in EUR yields there seems little reason to expect a sustained break of the 1.16-1.17 range.