Reply To: Traders Market Weekly: Inflation and Bank Earnings

#50853
Truman
Participant

Eurozone’s December CPI -0.3% m/m (expected +0.8%; last -0.1%) and +9.2% yr/yr (expected +9.7%; last +10.1%); December Core CPI +0.6% m/m (expected -0.1%; last 0.0%) and +5.2% yr/yr (expected +5.0%; last +5.0%); December Retail Sales +0.8% m/m (expected +0.5%; last -1.5%) and -2.8% yr/yr (expected -3.3%; last -2.6%); December Business and Consumer Survey 95.8 (expected 94.7; last 94.0); December Consumer Confidence -22.2 (expected -22.2; last -22.2)
UK’s December Halifax House Price Index -1.5% m/m (last -2.4%) and +2.0% yr/yr (last +4.6%); December Construction PMI 48.8 (expected 49.6; last 50.4)
Germany’s November Factory Orders -5.3% m/m (expected -0.5%; last +0.6%); November Retail Sales +1.1% m/m (expected +1.0%; last -2.8%) and -5.9% yr/yr (expected -2.8%; last -5.0%)
France’s November Consumer Spending +0.5% m/m (expected +1.0%; last -2.7%)
The positive bias has been attributed in large part to a December CPI report for the eurozone that showed a yr/yr moderation from November and contributed to the peak inflation narrative, as well as some hope that the ECB may not have to raise rates as much as feared.
Better-than-expected retail sales data for Germany and the eurozone has also played a part in boosting investor sentiment.
The major bourses are on track to close the week with gains ranging from 2.7-5.3%. EUR/USD -0.3% to 1.0488.