Wednesday, November 30
Inflation is everywhere and still very hot in the Eurozone, where CPI stands at over 10% on an annual basis. This is a record high and well above the ECB’s 2% target. Surging energy prices had been exacerbated by euro weakness. However, both energy and the USD/EUR exchange rate have fallen of late, and there is optimism in the air that peak inflation has been reached. But a recession seems unavoidable. Still, the ECB will have to continue raising rates, even if we see a sizeable drop.
What to watch: EUR, German 40