28 Mar 2016
Eurozone: All eyes on inflation data this week - RBS
Brian Daingerfield, FX Trading Strategist at RBS, suggests that in the Euro-area, the latest national inflation CPI estimates for March are released along with the March CPI estimate for the Euro-area as a whole.
Key Quotes
“Even a pickup in current inflation may be unlikely to inspire confidence in the inflation outlook as medium-term inflation expectations in the market have once again begun to trend lower. While well-above the 1.39% level seen on February 29th, 5-year 5-year forward inflation expectations have slipped from as high as 1.51% in early March to just 1.43% today.
A strong correlation between oil prices and market medium-term measures of inflation expectations has been a point of contention among policy makers, but a fall in inflation expectations even as oil prices have risen could be seen as a more pressing concern.”
Key Quotes
“Even a pickup in current inflation may be unlikely to inspire confidence in the inflation outlook as medium-term inflation expectations in the market have once again begun to trend lower. While well-above the 1.39% level seen on February 29th, 5-year 5-year forward inflation expectations have slipped from as high as 1.51% in early March to just 1.43% today.
A strong correlation between oil prices and market medium-term measures of inflation expectations has been a point of contention among policy makers, but a fall in inflation expectations even as oil prices have risen could be seen as a more pressing concern.”