Data released by European countries mainly stays on track to forecasts.
The ECB made recent announcements that will affect all Eurozone countries: The central bank announced that their decision over additional quantitative easing through buying sovereign bonds will wait until 2015, and that the cheap loans programme for banks to lend has not had the expected take-up. With these fiscal policies not achieving the required stimulus, EU countries are seeing little growth across the board but they are holding stable on most individual Consumer Price Index [CPI], employment and Industrial production figures, though the German wholesale price index did show negative indicators for Europe’s strongest economy.
The data released today covers Europe as a whole, Italy, Spain, France and Germany.
Spanish CPI [Consumer Price Index] (MoM) for November was stable at -0.1% versus expectations of -0.1% but down from previous 0.5%
German WPI [wholesale price index] (MoM) for November was down at -0.7% from optimistic expectations of 0.3%, but not far from previous of -0.6%
French Current Account (Oct) was slightly up at -0.90B from previous of -1.20B (The Current Account index measures the difference in value between exported and imported goods, services and interest payments during the reported month).
Italian CPI [Consumer Price Index] (MoM) for November maintained -0.2% against the same forecast and previous figure
EUR Employment Change (QoQ) (Q3) saw a 0.2% rise versus 0.2% expectations and previous of 0.3%
EUR Industrial Production (MoM) for October was at 0.1% as expected, though it is a drop from the previous month’s 0.5% figure
The stable figures stalled the euro’s hike against the USD that it has enjoyed overnight. Since April this year the euro has fallen against the strong greenback over 10%. However, this afternoon, the US will release its Producer Price Index (PPI) to measure the change in the price of goods sold by manufacturers. This is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation and this month it is forecast to be in negative figures at -0.1% falling from October’s figure of 0.2%. If the forecast is correct, the USD is predicted to lose strength.
MT4 chart: EURUSD
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