15 Nov 2013
Flash: All eyes on EZ Inflation Report today - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Global Market Research at the Bank of Tokyo Mitsubishi UFJ, notes that we get the full inflation report for the euro-zone today.
Key Quotes
“It was the flash estimate at the end of October that prompted the ECB easing on 7th November and the real GDP data from across the euro-zone yesterday won’t have eased concerns over the threat of a “prolonged period of low inflation” in the euro-zone.”
“Helped by a contraction in France, euro-zone real GDP slowed from 0.3% to 0.1% in Q3. Remember, nearly all international organisation and the ECB itself were predicting an acceleration of growth in the second half of the year. But if the euro was trading on purely relative economic performance it would probably be at parity versus the dollar!
“Based on drivers like the expected short-term interest rate spread 12-18 mths ahead, EUR/USD is exactly where it should be. Secondly, the Euro Stoxx 50 rally (1.1% yday) is also indicative of EUR/USD remaining stable around current levels.”
Key Quotes
“It was the flash estimate at the end of October that prompted the ECB easing on 7th November and the real GDP data from across the euro-zone yesterday won’t have eased concerns over the threat of a “prolonged period of low inflation” in the euro-zone.”
“Helped by a contraction in France, euro-zone real GDP slowed from 0.3% to 0.1% in Q3. Remember, nearly all international organisation and the ECB itself were predicting an acceleration of growth in the second half of the year. But if the euro was trading on purely relative economic performance it would probably be at parity versus the dollar!
“Based on drivers like the expected short-term interest rate spread 12-18 mths ahead, EUR/USD is exactly where it should be. Secondly, the Euro Stoxx 50 rally (1.1% yday) is also indicative of EUR/USD remaining stable around current levels.”