European debt crisis slowly but surely started to get better, The euro remained modestly higher against the softer dollar on Monday after data showing that euro zone inflation remained low in August, adding to concerns that the European Central Bank may scale up its stimulus program. EUR is the new Safe haven currency, EUR/USD was last at 1.1207, holding below early highs of 1.1262.
According to Eurostat, the annual rate of inflation in the single currency bloc rose 0.2% in August, the data unchanged from the previous month, but slightly higher than forecasts of 0.1%. This is a good time data for curing the eurozone debt consolidation
Officially The ECB targets inflation of close to, but just below 2%. Core inflation, which strips out food and fuel costs, remained steady at 1.0%. As reported from investing, Last week, the ECB's chief economist warned that risks to its medium-term inflation target have increased and indicated that the bank is prepared to expand its economic stimulus program if necessary.
Meanwhile from Brussels, ECB Executive Board member Peter Praet said lower commodity prices and signs of economic weakness mean there is an increased risk that the euro area will miss its inflation targets. But still on track according to recent conditions
Latest news from European Union, The ECB is to hold its next policy meeting on Thursday and President Mario Draghi will announce the latest growth and inflation projections at the post-policy meeting press conference.
Safe haven currency The euro and the yen had risen against the dollar earlier Monday as renewed weakness in equities markets overnight pressured the greenback lower.
Meanwhile China Stock market bearish, turned lower after a 10% rally in the previous two sessions, amid renewed concerns over the health of the world's second-largest economy. Demand for the euro and the yen was boosted as heightened risk aversion demand for the low-yielding currencies to fund investment in risk assets.
Pictures courtesy of Investing
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