Back
1 Nov 2013
Flash: EUR focused on inflation data – BTMU
FXstreet.com (London) - Derek Halpenny, strategist for The Bank of Tokyo-Mitsubishi UFJ explained it is the inflation data yesterday that will continue to be the focus for markets today.
Key Quotes:
“With annual inflation readings of 1.1%, it was already becoming more difficult for the ECB to ignore but the rhetoric from ECB Council members did suggest that there was no major concerns. Indeed,it was the rhetoric from ECB officials that led us to believe that the ECB would not act by trying to ease its monetary stance until Q1 2014”.
“However, the 0.7% reading increases substantially the risk that the ECB does in fact act, perhaps in December. The annual inflation rate is now up a mere 0.58% in the ten months of 2013”.
“The ECB forecast is for annual inflation of 1.4% and for 2014 for this to drop to 1.3%”.
Key Quotes:
“With annual inflation readings of 1.1%, it was already becoming more difficult for the ECB to ignore but the rhetoric from ECB Council members did suggest that there was no major concerns. Indeed,it was the rhetoric from ECB officials that led us to believe that the ECB would not act by trying to ease its monetary stance until Q1 2014”.
“However, the 0.7% reading increases substantially the risk that the ECB does in fact act, perhaps in December. The annual inflation rate is now up a mere 0.58% in the ten months of 2013”.
“The ECB forecast is for annual inflation of 1.4% and for 2014 for this to drop to 1.3%”.