EURUSD reaction for data can be confusing. CPI YoY slowed down from 1.9% to 1.5% (expected 1.6%) and HICP decreased from 2.0% to 1.6%. The only solution to explain bullish reaction is fact that analysts expected stronger depreciation.
Gains could also be influenced by news about German local inflation. CPI 0.16% in Saxony in June was 1.7% YoY (prior 1.6%) and on monthly basis it rebounded from negative values (0.2% vs -0.1% prior).
At the moment of publication of both indicators Eurodollar gained about 20 pips, continuing appreciation in the next minutes. It helped reaching session high and stay above 1.1400