Daily Update
As per the reports that came out from Germany and Spain, the Harmonized Index of Consumer prices and Consumer Price Index & Harmonized Index of Consumer Prices were reported at 0.7%. Although an increase was predicted, it was the same as the previous report, indicating no movement in the rate of inflation, liquidity and consumer purchase and consumption. On the other hand UK's Monthly Consumer Price Index report showed a positive increase from October's 0.1% to this November's 0.2%, as expected. Although this may reflect positively on the GBP, the effect would be short term. Bank of England Governor, Mark Carney is scheduled to make a speech today evening. Carney has more influence over sterling's value than any other person. His comments may spark a short-term positive or negative trend. The Retail report for November will be released later in the evening by USA. Changes in Retail Sales are widely followed as an indicator of consumer spending. Later tonight, the Euro Industrial production report is expected to come out.Being an indicator of the volume of production of Industries such as factories and manufacturing, a positive report will be regarded as inflationary which may anticipate interest rates to rise. This may generate a positive sentiment for the EUR. The market is heading into the last FED´s meeting of the year and pretty much convinced that the FOMC will raise the Fed fund rate by 25bps, from current 0.25% to 0.50% to a new target range of 0.50% to 0.75%. Odds for a rate hike are close to 100%, after the US Presidential election ended up with Donald Trump's victory, as his promises of high investment in infrastructure and tax cuts point to a faster pace of growth next year.Yesterday's market
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