Investing.com - Financial Markets Worldwide

Euro Deflation Scare Set To Continue‏

ByDanske Markets
Published 11/24/2013, 04:23 AM
Updated 05/14/2017, 06:45 AM
EUR/USD
0.18%

Market movers ahead:

The US holiday shopping season kicks off next week with Thanksgiving. It is hoped it will confirm the upbeat message from the October retail sales report.

We expect euro area flash inflation for November to increase a notch but remain at a level uncomfortably low for the ECB.

October industrial production growth in Japan should be solid but we expect a small decline in the Markit PMI for November. Inflation is likely to continue higher, although at a slowing pace.

We expect Swedish Q3 GDP to post a 0.3% increase q/q. This will not have much impact on the Riksbank decision in December though, as the focus is on low inflation - we continue to expect a rate cut.

Norges Bank is due to release the survey results from its regional network report, which is one of its preferred economic indicators. In Denmark, we expect Q3 GDP growth to show a 0.3% q/q increase driven by better exports.


Global macro and market themes:

The euro deflation scare is set to remain with us for a while but bad deflation is unlikely to materialise, in our view.

The Fed is moving closer to tapering.

Risk assets are underpinned by recovery - search for yield and Chinese reforms.

Upward pressure on US yields continues - the EUR/USD is heading lower.

Euro recovery is on track.

To Read the Entire Report Please Click on the pdf File Below.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.