Euro battered, follow through supply post EMU CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Bali) - The Euro has seen aggressive algo-led selling, with follow through supply afterwards, as players reflect their disappointment over inflation data out of the Eurozone for November, sending the rate to exchange hands below the mid-point of its 1.0640-1.0560 weekly range at 1.06, last at 1.0590.

    In terms of European inflation data, both HICP and 'core' came below expectations. The EMU Nov flash HICP came at +0.1% y/y vs +0.1% last, EMU Nov 'core' HICP stood at +0.9% y/y, which is below +1.1% expected. As per EMU Nov y/y flash HICP, it came below estimates at 0.2%, while EMU Nov flash HICP energy saw -7.3% y/y.

    Bets should continue to mount on the ECB having to resort to bold measures to stimulate depressed inflation data. The vast majority of banks are looking for a dovish outcome on Thursday's ECB policy meeting, with a rate cut and extended QE, however, there is no clear consensus on a possible increase in monthly purchases.
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