Preliminary inflation data in the euro area

• Core Consumer Price Index (CPI) (y/y), fact 1.1%, forecast 1.0%.
• Consumer Price Index (CPI) (y/y) (Oct), fact 2.2%, forecast 2.1%.
• The unemployment rate (September), fact 8.1%, forecast 8.1%.

The forecasted inflation in the eurozone in October rose by 0.1% for all indicators, which caused an increase in optimism about the final inflation’s figures in the eurozone. The consumer price index in the euro area on an annualized basis continues to show an upward trend.

Fig. 1. Consumer Price Index (CPI) chart (y/y)

 

Market’s reaction to inflation data in the eurozone was very restrained due to the statements of the ECB, which continue to adhere to a soft policy, despite the growth of the economy. Also it is worth noting the general growth of the American dollar and the weakness of the euro on political risks.

The EUR/USD pair maintains the downward trend, limited to last week’s minimum at 1.1330, breaking through which will open the way to the psychology of 1.1300.

Fig. 2. EUR/USD chart. The current price is 1.1340.

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Hanzenko Anton

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