Reply To: Traders Market Weekly: Inflation Obsession in Worsening Liquidity

#45022
Truman
Participant

Eurozone’s August PPI +5.0% m/m (expected +4.9%; prior +4.0%) and +43.3% yr/yr (expected 43.1%; prior 38.0%)
Spain’s September Unemployment Change 17.7K (prior 40.4K)
The latter has sparked some hope that the Federal Reserve could soon temper the pace of its rate increases and be closer to the end of its rate-hike campaign, a view that is manifesting itself in a weaker dollar.
The U.S. Dollar Index is down 0.6% to 111.12, with the euro (EUR/USD +0.6% to 0.9880) showing some strength against the greenback. Falling gilt yields have been another supportive factor for equities.
They have continued lower today following the news that Finance Minister Kwarteng will release his fiscal plan and forecasts from the OBR later this month instead of November 23, as previously indicated.
Amid the excitement for stock markets, it was also reported that producer prices in the eurozone increased 43.3% yr/yr in August versus 38.0% in July.