Location & Language

Zenfinex Global Limited regulated by the Financial Services Authority (FSA) of Seychelles (SD092)

CPI Downturn Sparks Deflation Worries for the Eurozone

By Samir Al Khoury

CPI fell year-on-year in November in the Eurozone, registering 2.4%, which is lower than both expectations (2.7%) and the previous reading (2.9%). The core CPI, excluding food and energy, also declined on an annual basis, recording 3.6%, below expectations (3.9%) and the prior reading (4.2%).

The manufacturing and services purchasing managers’ indices in the “Old Continent” remain in the contraction category, posting 44.2 points and 48.2 points, respectively. These figures indicate the sustained weakness of European economies, with Germany, the largest economy in Europe, still grappling with a noticeable economic slowdown.

Isabel Schnabel, a member of the Executive Board of the European Central Bank, stated yesterday that inflation is experiencing a significant slowdown, eliminating the possibility of the bank resorting to an additional increase in interest rates.

Regarding European interest rate expectations for next year, markets are currently pricing in approximately a 90% probability that the European Central Bank will commence reducing interest rates in the first quarter of 2024. This pricing anticipates five cuts of 25 basis points and an 80% probability of a sixth cut, with the total reductions amounting to 150 basis points.

Technically, the outlook for the euro currency appears less promising. After reaching 1.1017 against the dollar on November 29 of this year, its highest level since August 10, 2023, the euro declined to 1.0775 today, reflecting a decrease of approximately 2.2%.

Furthermore, the EUR/USD pair broke the 200-day moving average at 1.0821, and the DEATH CROSS persists between the 50-day moving average at 1.0696 and the 200-day moving average, indicating negative momentum for the euro against the dollar.

However, if the pivot point of the EUR/USD at 1.0807 is breached today, it is likely to target support levels at 1.0766, 1.0736, and 1.0695. If it surpasses the pivot point, it may target resistance levels at 1.0837, 1.0878, and 1.0908.

 

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.

Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.

Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.

Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.

Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.

*All trading involves risk.

Back

Popular Posts

U.S. Stock Markets Face Sharp Fluctuations Amid Rising VIX

Reasons for the Decline of the Mexican Peso Against the US Dollar

Weakness of the Swedish Economy and Its Impact on the USD/SEK Pair

El Dow Jones, Nasdaq 100 y S&P 500 abren mixtos tras la confianza...

Lorem Ipsum

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

Here are some related articles you may find interesting:

Market Insights​

November 1, 2024

U.S. Stock Markets Face Sharp Fluctuations Amid Rising VIX

U.S. stock markets are experiencing sharp fluctuations, with the VIX index rising to levels above 23 points yesterday, its highest level since September 6. U.S....

Market Insights​

October 31, 2024

Reasons for the Decline of the Mexican Peso Against the...

The price of the US dollar against the Mexican peso continues its upward trend, reaching 20.2253 yesterday, the highest level since September 29, 2022. The...

Market Insights​

October 30, 2024

Weakness of the Swedish Economy and Its Impact on the...

The price of the US dollar against the Swedish krona continues its upward trend, reaching 10.6852 yesterday, the highest level since August 2, 2024. The...

Market Insights​

October 29, 2024

El Dow Jones, Nasdaq 100 y S&P 500 abren mixtos...

El Dow Jones opera con pérdidas y retoma la perspectiva bajista, alcanzando mínimos de dos días en 42,166.El Promedio Industrial Dow Jones inició las negociaciones...

Ready to Elevate Your Trading Journey?

Open a Taurex account and start trading today.

We’re Sorry

Access to tradetaurex.com
is unavailable in your region

tradetaurex.com is required to abide by global laws and therefore the information on this site is not directed at residents of the United States, Canada, North Korea, Iran, Myanmar, Belgium, Spain, France, Japan, South Korea or any particular countries and is not intended for distribution to, or use by, any person in an country or jurisdiction where such distribution or use would be contrary to local law or regulation.