Eurozone

Week Ahead – RBA meeting and industrial output in focus

Posted on April 1, 2016 at 12:23 pm GMT

The first week of the second quarter of 2016 looks set to start on a calm note with European industrial output data and the Reserve Bank of Australia’s April policy meeting likely to dominate the next seven days. Eurozone The Eurozone will have the busiest week starting with unemployment, producer prices and the Eurozone Sentix investor confidence index all out on Monday. Producer prices in February are expected to fall deeper into negative territory from -2.9% to -4.0%, highlighting the [..]

Euro climbs to 5-month high as Eurozone core CPI edges higher

Posted on March 31, 2016 at 2:17 pm GMT

The euro continued to be dragged higher by the retreating dollar on Thursday and the single currency got a further lift by a rise in Eurozone inflation. Euro area CPI rose to -0.1% year-on-year in March according to the flash reading from Eurostat. The figure is in line with consensus estimates and is up from -0.2% in February. More significantly, core CPI, which excludes food and energy, edged up to 0.9% in March from 0.8% the prior month and was [..]

Week Ahead – Important week for US data after rate talk triggers dollar rally

Posted on March 24, 2016 at 2:20 pm GMT

The coming week looks set to get busy after the long Easter weekend, particularly for the US, which will see some key data releases such as the monthly non-farm payrolls report. Also to come into focus will be the Bank of Japan’s Tankan survey, Eurozone flash inflation and manufacturing PMI out of China. United States The United States will be one of few Western markets open on Monday when many European markets will be closed for the Western Easter celebrations. [..]

European Session – Pound under pressure after cabinet resignation; oil see-saws again

Posted on March 21, 2016 at 3:40 pm GMT

It was a quiet start to the week with European equities slightly down from Friday’s close. The dollar was broadly higher but off earlier peaks. Both the dollar and the euro found support from remarks by ECB and Fed officials. The ECB’s Francois Villeroy de Galhau said at a Bank of France conference on Monday that the ECB does not have more unconventional measures on the agenda at this point, indicating the central bank is likely to adopt a wait-and-see [..]

Week Ahead – Eurozone PMI and UK, Japan inflation to dominate in quiet week

Posted on March 18, 2016 at 3:56 pm GMT

After an intense two weeks of central bank activity, it will be a relatively quieter week ahead of the Western Easter break. Along with Eurozone flash PMI, inflation data for the UK and Japan will be the main data to watch over the coming seven days. Starting the week will be housing data for the United States. Existing home sales are due on Monday and are forecast to show a 2.9% decline over the month in February. New home sales [..]

ECB unleashes more stimulus as it cuts all three rates and expands QE

Posted on March 10, 2016 at 4:01 pm GMT

The European Central Bank took markets by surprise by delivering a series of stimulus measures at today’s policy meeting. While the majority of economists were expecting a 10bps cut in the deposit rate and some form of modification to the asset purchase program, the ECB went further and reduced its three key interest rates, as well as increase the size of its bond purchases. At today’s announcement, the ECB cut its main refinancing rate from 0.05% to 0.00%, a move [..]

European Session – Euro subdued ahead of ECB; aussie extends gains

Posted on March 7, 2016 at 3:40 pm GMT

Major currencies drifted sideways for much of Monday’s European session on what turned out to be a quiet trading day with little on the data front to excite markets. The US dollar was broadly stronger but the euro came under pressure at the start of the session as expectations of ECB easing on Thursday intensify. Better-than-expected German factory orders out earlier in the day failed to support the euro, which slipped from around 1.0990 dollars to around 1.0950 soon after [..]

Asian Session – Dollar attempts rebound following employment report losses

Posted on March 7, 2016 at 8:55 am GMT

The US dollar was trying to claw back some of the losses it registered on Friday, after weak wage growth and hours worked data pointed to little urgency for the Fed to hike rates in its meeting next week. The dollar pushed the euro back below 1.10 around 1.0970, as the pair traded as high as 1.1042 on Friday. Investors and traders were eagerly awaiting this week’s ECB meeting, where additional stimulus is expected for the Eurozone. Whether the ECB will meet, [..]

Week Ahead – Focus turns to ECB, BoC and RBNZ rate decisions, China data

Posted on March 4, 2016 at 12:54 pm GMT

Monetary policy will take centre stage next week as the European Central Bank, the Bank of Canada and the Reserve Bank of New Zealand meet for their latest policy decisions. The US will take a back seat with no major data to report but China will attract attention for some key data releases. The first data to come out of China next week are the closely watched trade numbers on Tuesday, which continue to grab markets’ attention as investors look [..]

Eurozone slips back into deflation; pressure builds on ECB

Posted on February 29, 2016 at 12:09 pm GMT

Inflation in the Eurozone slipped back into negative territory in February according to the flash estimates by Eurostat. Annual CPI fell from 0.3% in January to -0.2% in February, which was below consensus forecasts of drop to 0.0%. This was the first negative reading since September 2015 and marks the end of four months of accelerating inflation. Core inflation was also weaker than expected, coming in at 0.8% year-on-year, against expectations of 0.9%. The core rate, which excludes food and energy [..]

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