Draghi Just Missed Some Positive EU Data
The ECB (European Central Bank) president, Draghi, was at the European Parliament yesterday, answering questions about the economy of the Eurozone. HonestIy, I was expecting the Euro pairs to show some signs of life during or after his speech but the reaction was completely muted.
It felt more like a Friday evening as the market was dead quiet. Draghi is famous for causing havoc in the forex market when the ECB needs the Euro lower but he´s also well known for saying nothing during his speeches when the ECB sees the economic situation has improved.
I guess Draghi went for the second option yesterday. This means that the ECB is not as bearish as they used to be a few months ago. This morning´s Eurozone economic data is yet another clue which points to further economic recovery in the EU, hence the ECB is not as agitated as six months ago.
The French consumer spending beat the expectations three times over, posting a nice 0.9% jump in October. This is particularly positive for the Eurozone because this is the second month of increased consumption in the last three months, which reverses the downtrend we saw in summer.
The Spanish inflation (CPI) also held up pretty well this month, while the German import prices grew 0.9%. The regional German inflation numbers are starting to come out and some of the states are missing the expectations. Let´s see how the federal inflation comes up for the whole of the country.
By the way, I guess Draghi would have loved to have this morning´s numbers 24 hours ago so he could shove them at the European parliament officials while bragging about what an economic genius he is.
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