Eurozone CPI continues to be the thorn in Draghi’s side as the figure came out in line with forecasts at 1.4%.
The lacklustre print contradicted other recent eurozone data with GDP showing a continuation of steady growth, unemployment coming out at record lows and Consumer Confidence nearing two-decade highs, this arsenal of outstanding and robust data still failed to break the continuation of poor Inflation prints. The Bloc State is behind the curve with regards to economic progress when compared to the US and UK and eyes will now once again be cast on Draghi as his press conference next week is expected to have a hawkish sentiment, with analysts predicting the ECB will revisit their plan of down turning it’s Quantitative Easing program. This could pave the way for an Interest Rate hike as near as the end of 2018, however with lacklustre Inflation prints a hawkish ECB may be vastly dissipating.

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