Eurozone: No surprise in inflation data, disappointing German IFO data - TDS
|Analysts at TD Securities note that the German IFO survey disappointed broadly to the downside, indicating that sentiment still has yet to recover.
Key Quotes
“The current conditions index slipped lower to 103.4 (mkt: 103.9) while expectations dipped to 93.8 (mkt: 94.3). The latter is effectively at the lows reached during the euro crisis. While largely disappointing, some clarity on the US-China trade deal in the next month could allow for the long-awaited rebound in sentiment in March.”
“Eurozone core inflation was confirmed at 1.1% in January (up from 0.9%) and as expected, package holidays accounted for much of the increase (a +12bp contribution). That said, core inflation ex package holidays still firmed, to 1.0% up from 0.9%, led by both services and goods. That is a positive development, though a break out of recent ranges remains to be seen and we remain cautious in the near term.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.