Euro has risen vs the US dollar.
With hopes that the impending inflation figures for the Eurozone as a whole will stay persistent, the Euro getting additional support on Tuesday and continues its rebound against the US Dollar (USD) for the third consecutive day. The initial German Harmonized Index of Consumer Prices (HICP) data for December, which made public on Monday, revealed that, compared to the 0.5% estimate, the monthly headline HIPC inflation increased by 0.7%. The headline HICP increased 2.9% on an annual basis, up from 2.4% in November.
The speculations and opposition to President-elect Donald Trump’s tariff plans, meantime, have markets on edge.
In the meantime, markets are tense due to the rash decisions and erratic responses about President-elect Donald Trump’s tariff proposals. According to an article in the Washington Post, Trump was thinking of streamlining his tariff plans by applying a single, universal charge on essential imports and commodities. Trump himself appeared a few hours later to deny the rumors and reaffirm that the plans and schemes would continue as previously declared.
Daily Market Update: French HICP is positive.
Euro getting additional support on Tuesday and continues its rebound against the US Dollar (USD) for the third consecutive day. Earlier on Tuesday, the French preliminary HICP for December made public. The monthly indicator broke the the preceding disinflationary report by increasing by 0.2%, which was higher than the -0.1% from November and lower than the 0.4% forecast. At 1.8%, the annual gauge was 0.1% higher than the 1.7% reading from November.
The preliminary Eurozone HICP for December will be made public at 10:00 GMT.
There is no consensus on the monthly headline HICP, which was -0.3% in November.
It anticipated that the annual headline HICP will slightly increase from 2.2% to 2.4% in the previous month.
There is no projection for the monthly core HICP, which was -0.6% in November.
The yearly core HICP predicted to remain unchanged at 2.7%.
As of right now, the European Central Bank (ECB) expected to lower its policy rate on January 30 by 25 basis points.
Inflation in Italy will be available at 10:00 GMT as well.
Inflation in Italy will be made available at 10:00 GMT as well. Similar trends to those in Germany evident here, as the preliminary December monthly HICP expected to rise from -0.1% to 0.3%.
German Bunds increased by a significant amount last week, reaching 2.47% on Monday. Rates are beginning to drop on Tuesday; the Bund is now trading at about 2.44%.
European stocks are declining this Tuesday due to their dissatisfaction with the recent changes in European inflation data. The European Central Bank may decide to hold rates stable for longer or perhaps start hiking again because of concern that inflation will increase, which would be bad for stocks.
