The latest speculation for the Eurozone is when there will next be a rate hike. With this month’s hike cementing recent gains for the single currency we have some inflation data today that could prove crucial as to when we may next see a rate hike for the Euro.
High Inflation was cited as one of the reasons to raise the Euro interest rate and investors are now speculating as to when we will next see a further increase. Some speculate it could be as soon as June in a series of increases, other feel it will be one larger rise – say 50 bps, by August.
Whenever it happens inflation will be one of the key drivers on the decision so today’s data is important. More recently with the pound we have seen the sterling rate fluctuate more when inflation data is released than when we get the actual interest rate decision. This is because the markets are generally aware of impending rate hikes whereas inflation data is more difficult to predict.
Today at 10.00 we have European CPI Inflation Data and at 13.30 US CPI Inflation. This is a measure of the change in of the price of goods in the Consumer Price Index which is generally one of the most widely used inflationary data sources, particularly by governments, which could be key to any interest rate decisions.
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