Investors have been witnessing stability in inflationary figures across Europe for the past several days. Indeed, one of the reasons posted for the European Central Bank’s (ECB) decision to hike interest rates last week was stable growth in regional inflationary data.
Tomorrow, the United States will begin posting its monthly figures on inflation, starting with the Producer Price Index (PPI) and followed by Friday’s release of the Consumer Price Index (CPI). The PPI data may reveal a minor slow-down in growth, from 1.6% to 1.1%, if it gets published as expected, but the data does not seem significant enough to affect American growth figures.
Friday’s CPI figures may further fuel stability in growth forecasts as the core data reading, which excludes food and energy, is expected to remain stable at 0.2%. The overall reading is also being anticipated to reveal a growth from 0.5% last month to 0.6% this month.
If US inflationary data can sustain such stability, arguments for monetary adjustments may become more pronounced in the near future. For now, the solid numbers could simply help the greenback push back against its recent weakness in the foreign exchange markets (FOREX).
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
