EUR: Clean sweep of positive EZ data releases may provide welcome relief - ING

Viraj Patel, Research Analyst at ING, suggests that in what their economists are calling ‘Super Tuesday’, today will see the release of 3 key EZ economic indicators – 3Q GDP, flash Oct CPI and Sep unemployment.

Key Quotes

“The focus for the EUR is now on the timing of the first deposit rate hike and here it's all about underlying inflation dynamics; if core inflation can drift up to 2% and show signs becoming self-sustained, then calls for a rate hike will grow louder. A small uptick in core CPI to 1.2% today would be a step in the right direction – but there are risks that it remains stuck at 1.1% given that German core inflation was stable in Oct. A clean sweep of positive EZ data releases will be a welcome pick-me-up for the EUR’s post-ECB hangover. EUR/$ to test the 100-dma (1.1685).”