Euro Area Inflation Jumps Towards 10%
The Euro inflation rate rose towards 10% in September vs 9.1% in August. Forecasts pointed to a rise of 9.7%, hence the reading is higher-than-expected and is the fifth consecutive month of rising inflation in the Euro area.
Food, alcohol and tobacco and energy were among the faster increases. Non-energy industrial goods increased by 5.6% and services with 4.3%. Yesterday Germany had the highest reported inflation in this decade with 10.9%.
The month-on-month data increased by about 1.2% vs 0.6%. The core inflation rate jumped to 4.8% which excludes energy, food, alcohol & tobacco.
The higher inflation might clear the way for further interest rate hikes from the ECB which could be supportive for the euro currency while the current reading seemingly pressured the fiber.
The widening interest rate gap between the ECB and the FED which operates with a more intense policy stance with the particular hikes pressures the euro additionally.
Euro is trading about 0.6% lower against the dollar while it might find buying interest in the New York trading session. The daily interval found euro shorting around the Quarter’s lower value extreme which was confluent with the inflation data release, bounced back from the early gains.
Euros daily interval with resistance around the Quarter’s lower value extreme while the rate rose two days in the row.
The Euro STOXX 600 reversed slightly from the early highs while the market was still up by about 0.6% and could find further buying, depending on the auction around yesterday’s VWAP close level as short covering into the weekend is possible, presumably.
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