The last week was so eventful for traders: FOMC Meeting, Bank of England’s rate decision, the OPEC+ meeting, and also NFP. This week is going to be interesting as well! Let’s see what you should focus on.
Euro zone inflation reaches six-year maximum in October
In October, euro zone inflation demonstrated its fastest tempo for almost six years, powered by energy prices. That’s what the European Union statistics agency uncovered on Friday. The given outcome is in line with the agency’s earlier forecast.
Without food and energy, the core inflation measure was updated downwards.
As Eurostat informed, in October, consumer prices in the 19 countries of the euro zone headed north by 2.2% year-on-year after September’s 2.1% rally and August’s 2% leap. It appeared to be the biggest leap since December 2012.
Apparently, the headline figure backs the ECB’s decision to conclude its price-boosting bond-purchasing program at year-end due to the fact inflation is currently overshooting the bank’s objective of price surge below, although close to, just 2% over the medium term.
In less upbeat news for the European Central bank, inflation without the volatile components of energy and also unprocessed food, which is the key gauge that the ECB watches in its policy verdicts, was updated downwards by Eurostat to about 1.2% on the year, from a previous forecast of 1.3%. However, it was still soaring faster than the 1.1% leap reported in September.
In October, headline inflation rallied by up to 0.2% on the month, which is in line with market hopes. However, it speeded down from September’s 0.5%.
The narrower core indicator, observed by a great number of investors, excluding alcohol, tobacco, food, and energy, amounted to 1.1% on the year.
The soar in headline inflation was mostly powered by energy prices that surged by 10.7% in October year-on-year, while prices for other industrial products ascended by just 0.4%.
Inflation in the services sector, which appears to be the largest in the euro zone, accounted for 1.5% on the year, although prices sank by 0.3% on the month.
Euro Zone will reveal the ZEW Economic Sentiment index at 12:00 MT (GMT+2) on Tuesday, November 9.
Germany, the leading economy in the Euro Zone, will reveal one of the key economic indicators – German Ifo Business Climate on September 24 at 11:00 MT time.
ISM Manufacturing PMI will be announced at 17:00 MT (GMT+2) on Wednesday, December 1.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.