Flash August German HICP inflation to print at 0.1% yoy

Aug 28, 2015 06:05 am UTC| Commentary

In the month of July, Germanys HICP inflation remained unchanged at 0.1% yoy while the national measure slowed one tick to 0.2% yoy. The energy component fell from -5.9% yoy in June to -6.2% yoy (cutting 3bp) while a more...

Flash August Spanish inflation to print at -0.2% yoy

Aug 28, 2015 06:01 am UTC| Commentary

Spanish HICP inflation remained flat (0.0% yoy) in July due to ongoing weakness in energy prices (energy component at -5.7% yoy), cutting 1bp alongside softer food prices at 1.4% yoy and cutting 9bp from the headline...

EC economic indicators for August likely softening

Aug 28, 2015 05:58 am UTC| Commentary

The slight improvement in both manufacturing and services flash PMIs for August (released last week) and the fact that the EC indicators tend to lag the PMIs, the risk are tilted to the upside. The European Commissions...

Euro area higher real rates, unwarranted tightening of monetary policy

Aug 28, 2015 05:33 am UTC| Commentary

Real interest rates in Euro area are increasing as the lower inflation expectations dominate the downtrend in nominal yields. The ECB is likely to see this as an unwarranted tightening of the monetary policy and this is...

5Y5Y inflation expectations far below ECB’s 2%-target

Aug 28, 2015 05:18 am UTC| Commentary

A year ago, when the 5Y5Y inflation swap dropped below 2.0%, Draghi drew market participants attention to this medium-term inflation measure and made it clear that it is monitored at the ECB. The reversal of the slight...

Currency War Series

Intensified currency war implies stronger effective Euro

Aug 28, 2015 04:48 am UTC| Commentary Central Banks

The ECBs outlook for higher inflation is threatened by a renewed trend higher in the effective EUR, which, when considering the 3M change, is at the highest rate in more than two years. The upward pressure on the EUR...

Asia rally led by Japan as commodities, dollar gain

Aug 28, 2015 04:41 am UTC| Commentary

Asian markets experienced a second strong rally on Friday, with an upbeat lead from Wall Street, a rebound in commodity prices, and a firmer US dollar making a perfect mix for investors. All three main US bourses closed...