According to recent data from Eurostat, inflation in the eurozone rose to 2% in October. Economists' forecasts were slightly lower at 1.9%. September inflation was revised downwards to 1.7%. Core inflation remained at 2.7%, slightly above expectations. This data supported the growth of the euro, which is strengthening for the fourth consecutive session: the EUR/USD pair reached a two-week high at 1.0883. The inflation data reinforced expectations that the ECB may refrain from a more aggressive 0.5% rate cut in December. This year, the Central Bank has already cut the rate three times, each time by 0.25%, bringing it from 4% to 3.25%. Markets are now waiting for another 25bps decline, but the likelihood of a larger easing is decreasing. In addition, eurozone GDP showed growth of 0.4% in the third quarter, which exceeded forecasts. The ECB said at a recent meeting that low economic activity avoids a sharp spike in inflation, which supports its current monetary strategy.
SZYBKIE LINKI
Skontaktuj się z ForexMart 
