Provisionally, Euro-zone consumer inflation rose to 2.0% for February from 1.8% and was in line with expectations, although this was the strongest reading for four years.
Unemployment held at 9.6% for January with markets waiting for any signal of a policy change from the ECB and the inflation data did not provide support to the Euro.
Policy is expected to remain on hold at next week’s Council meeting, although comments from President Draghi will be watched closely.
Sterling No sooner had the financial press written that Sterling was on the skids due to the Chancellor being on the way out, than PM Starmer woke up to the need for some TLC for his beleaguered Chancellor and executed a handbrake turn to administer some gruesome bedside cheer to the apparently on life support […]
EU Inflation With the ECB annual symposium meeting in sunny Sintra, Portugal, inflation is very much on President Lagarde’s mind ; that is because it is showing signs of rising with the monthly inflation rate showing an increase of 0.3% and that presages a break above the target 2% rate just as she and her colleagues […]
Gold With Gold accounting for the second highest proportion of Central Bank reserves after the USD and the mood music shifting to it assuming a greater influence on future reserves management, it is worth looking at the numbers behind that. In the 1960s, Central Banks held the highest amount historically of 38,000 tons of gold. […]