Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).
Euro zone industry output goes down
In November, euro zone industrial output reported its greatest dive for almost three years, as follows from data uncovered on Monday. It spurred worries about the EU’s economic surge in the final quarter of last year, simultaneously casting doubt over the timing of another rate lift.
The economic bloc’s statistics office Eurostat informed that in November industrial output in the 19-nation euro zone went down by 1.7% month-on-month, which appears to be its worst outcome since February 2016, following a moderate, updated downwards 0.1% ascend in October.
Market experts had hoped for a sink, although smaller than official forecast show. Investors had generally hoped for a 1.5% monthly dive as well as a 2.3% year-on-year tumble.
The dismal output data ramped up downbeat mood regarding the EU’s economic surge that seems more likely to stay slow for the last three months of 2018.
However, some experts are assured that the EU is still capable of eking out a tiny leap in its GDP in the last quarter, although the new output figures showed a downbeat signal.
The euro zone's economy tacked on by just 0.2% in the third quarter, in contrast with a 0.4% leap in the second quarter. Expectations for a rebound are currently fading away.
Notwithstanding November’s better-than-anticipated retail trade data that disclosed that customers are still eager to spend, a downbeat mood among investors will probably impact investment.
The output reading headed south mainly due to a large sink in the output of capital goods, including machinery.
Slower surge in the last quarter could make the ECB review its estimate of a 1.7% GDP rally for all-2018.
Low surge as well as an easing of the inflation rate in December from the major bank’s objective make a rate lift this year less probable, as some financial analysts pointed out.
The European Central Bank will make its policy statement on July 22 at 14:45 MT (GMT+3).
The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…