The euro is holding near the lows
16.11.2015
On Monday, the main currency pair is trading unsurely, but is still keeping at the minimum values of more than 6 months.
The euro is kept under pressure, the sales are minimal, but they are present. The current quote in the pair is 1.0732.
Today the final calculation of the euro area inflation for October 2015 was unveiled. The Eurostat data showed that consumer prices in the region increased by 0.1% y/y, thus offsetting the 0.1% dip in September. The target level for inflation still remains at around 2%. For the European Central Bank, it is important to see a positive trend in this matter. According to the updated opinion of the ECB, the road to the change in inflation would be more prolonged than previously thought.
There continues to be talk in the market about the fact that in December, the ECB will take a decision on the expansion on the QE program, which is running from March this year. Increased support is needed for the creation of at least a minimal but permanent inflationary pressure. Without this support the euro zone will very quickly again slide into deflation.
The weak point in the index of consumer prices multiple times remains the cost of energy and excise goods. The ECB is unlikely to do anything with that, but it is possible to stimulate the growth of prices in the region.
RoboForex Analytical Department
The euro is kept under pressure, the sales are minimal, but they are present. The current quote in the pair is 1.0732.
Today the final calculation of the euro area inflation for October 2015 was unveiled. The Eurostat data showed that consumer prices in the region increased by 0.1% y/y, thus offsetting the 0.1% dip in September. The target level for inflation still remains at around 2%. For the European Central Bank, it is important to see a positive trend in this matter. According to the updated opinion of the ECB, the road to the change in inflation would be more prolonged than previously thought.
There continues to be talk in the market about the fact that in December, the ECB will take a decision on the expansion on the QE program, which is running from March this year. Increased support is needed for the creation of at least a minimal but permanent inflationary pressure. Without this support the euro zone will very quickly again slide into deflation.
The weak point in the index of consumer prices multiple times remains the cost of energy and excise goods. The ECB is unlikely to do anything with that, but it is possible to stimulate the growth of prices in the region.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.