On Friday, inflation data for the euro zone was released. As expected, this indicator grew significantly. This is currently an increase of 3%, 0.8%. Within a month and the signal for an increase in prices may also be a problem in the euro area. This is a problematic situation in the south of the continent. Italy is currently in a particularly dire situation, facing major economic problems. If there is an increase in interest rates or a reduction in the asset purchase plan, we can expect the problems to get worse. However, these measures are sustainable measures taken in the fight against rising inflation.
The US currency is not the only one that has no chance of raising interest rates in Europe. Investors are very optimistic about the growth opportunities of the local economy. Even the University of Michigan code, which is growing slower than expected, did not stop it. On Friday, the dollar strengthened against the euro for another day. Today the dollar is only a quarter of as strong as it was against the euro since the beginning of November last year.
The dollar’s winning streak has a negative impact on the slot. The outflow of capital from the euro area is absorbed from other markets. The currencies of our region have also been declining in recent days. This mainly applies to Zloty and Forind. The Czech currency is under low pressure, but interest rates are expected to rise in the Czech Republic next week, so investors are already beginning to prepare for it. The euro reached PLN 4.60 today. At the end of July this year it was very expensive, but it rose above that level. Let’s see if the situation happens again.
Today there are no important metrics in the big economic data calendar.
Message Brigikerzewski, Chief Analyst at InternetowyKantor.pl
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