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28 Mar 2014
EMU's CPI key on Monday - BTMU
FXStreet (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ, remarks the relevance of the EMU's inflation data ahead of the ECB meeting.
Key Quotes
"The key data from the euro will come on Monday with the flash CPI estimate for March, which is expected to reveal a decline in the annual rate to a new low of 0.6%. A 0.6% print next week will probably not be enough for ECB action on Thursday although we maintain that additional easing will be forthcoming by summer time."
"The M3 money supply data yesterday continued to show the ongoing contraction in private sector credit. Overall private sector credit fell 2.2% in February from a year earlier while loans to non-financial corporations fell 3.0%."
"Contracting private sector credit is inherently deflationary and with a still large degree of spare capacity in the euro-zone, we see downside risks to price stability. EUR/USD may come under some further modest downward pressure into the ECB meeting but our view of inaction leaves us cautious over the degree of downside from here over the short-term."
Key Quotes
"The key data from the euro will come on Monday with the flash CPI estimate for March, which is expected to reveal a decline in the annual rate to a new low of 0.6%. A 0.6% print next week will probably not be enough for ECB action on Thursday although we maintain that additional easing will be forthcoming by summer time."
"The M3 money supply data yesterday continued to show the ongoing contraction in private sector credit. Overall private sector credit fell 2.2% in February from a year earlier while loans to non-financial corporations fell 3.0%."
"Contracting private sector credit is inherently deflationary and with a still large degree of spare capacity in the euro-zone, we see downside risks to price stability. EUR/USD may come under some further modest downward pressure into the ECB meeting but our view of inaction leaves us cautious over the degree of downside from here over the short-term."