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3 Jun 2014
Disinflationary pressures look set to remain in the EMU – Danske Bank
FXStreet (Edinburgh) - In light of the recent inflation figures from euro zone members, today’s EMU’s CPI release is likely to follow the down path, adding to the ECB easing expectations. Noted Lars Christensen, Chief Analyst at Danske Bank.
Key Quotes
“Today we will have the single most important data release before the ECB meeting with the euro-zone flash HICP estimate for May”.
“The decline in the German, Italian and Spanish inflation readings (covering close to 60% of the euro HICP) has led to a down revision in expectations and we probably need a print below 0.5% y/y for rates to decline further in the front of the EUR curve and add to the vast expectations of ECB action Thursday”.
Key Quotes
“Today we will have the single most important data release before the ECB meeting with the euro-zone flash HICP estimate for May”.
“The decline in the German, Italian and Spanish inflation readings (covering close to 60% of the euro HICP) has led to a down revision in expectations and we probably need a print below 0.5% y/y for rates to decline further in the front of the EUR curve and add to the vast expectations of ECB action Thursday”.