• We are gaining more confidence in the forecast
• And there is more scope to disregard the smaller bumps in the disinflation process
• Being „data-driven“ currently does not mean being „flash-driven“
• Data is inherently noisy and there is a risk of overreacting to volatile news
• Should refrain from changing 2% inflation target

He’s taking heart in the better headline reading in the French inflation data earlier here. But again, it isn’t going to be one to compel them to move in July. The next key date to watch will be September and there are still quite a number of data releases to work through until then.

This article was written by Justin Low at www.forexlive.com.