EUR/USD in focus as Spain CPI jumps to 4.9%, highest since Feb 2023

The source reports no price move, pip figure or technical levels for EUR/USD or other euro pairs. Spain's preliminary September inflation data came in hotter than expected. Headline CPI rose 4.9% y/y, above the 4.6% forecast and the prior 4.3%. That is the highest annual reading since February 2023. The EU-harmonised HICP measure climbed 5.0% y/y, against 4.9% expected and up from 4.6% previously. Core annual inflation is also seen accelerating from 2.9% to 3.1% in September. This suggests price pressures are broadening rather than staying confined to energy prices. For euro traders, the upside surprise across headline, harmonised and core measures in a major eurozone economy adds to the region's inflation picture. It could feed into expectations for European Central Bank policy, which would be supportive for the euro if markets price a firmer stance. Traders may watch whether similar broad-based price pressures emerge elsewhere in the bloc.