mask Today’s all about inflation

13/ 12/ 2016

Today’s all about inflation

Daily Update

Yesterday's Market

  • EUR Deal between OPEC and non-OPEC
  • JPY Tertiary Industry Index
  • USD monthly budget statement 

Yesterday Explained

For the first time, in 15 years, a deal struck between OPEC (Oil petroleum export countries) and Noc-OPEC, with respect to reduction in oil consumption. This cause pressure on the US dollar. Causing a slight increase in Euro and other rival currencies, as the markets closed yesterday.

Japan’s Ministry of Economy released it's monthly tertiary industry index report. It showed a 0.2% increase compared to the previous report. This is an indicator of the domestic service sector in Japan, which also showed a positive use of its exports. Although it reflects with low volatility for JPY, it is a plus for the Japan economy.

The U.S monthly budget statement, released by the Financial Management Services showed a balance of 137 billion. Last month's report 44 billion. The deficit balance was indicative of the bearish status of Government debts. However, on the bright side, it was an improvement over last month’s report.

Today's Market

  • AUD Housing  Price Index
  • EUR Consumer Price Index & Harmonized Index of Consumer Prices
  • GBP Monthly Consumer Price Index

Today's Focus

Early morning, Australia released its housing pricing index for its third and final quarter. It saw a decline by 1.3%, compared to the previous quarter's 2% increase. The housing prices has gone down, which is an indicator of low inflation. This is bearish on the AUD, and it is further expected to go down when the Australia releases its unemployment report on Thursday (15 Dec).

Later in the evening Germany will release its Consumer Price Index & Harmonized Index of Consumer Prices. This will give an indication on rate of inflation, liquidity on consumer purchase & consumption in Germany. 

The day will end with UK's Monthly Consumer Price Index report. This basically is an indication of retail prices and the purchasing power in UK. Retail prices are expected to go up, and owing to the high rates of inflation, this report will reflect positively on GBP.