Euro’s Boring Dynamic
The single currency is calm. Euro/Dollar pair has lifted 0.1% to trade at 1.1934. Today, the US will release New Home Sales and tomorrow we’ll get CB Consumer Confidence. Future Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin will deliver speeches. Recent FOMC protocol showed that members are worried that such a soft inflation won’t pick any time soon. December’s rate hike remains in store (93%) but it’s doubtful that there would be 3 rate hikes next year.
German Ifo Business Climate rose to 117.5. Final Q3 Gross Domestic Product increased to 0.8%, marking a 3-year maximum. Manufacturing PMI hit the 7-year maximum of 62.5. As we can see, German maintains its position of the strongest Eurozone economy. As of coalition, Angela Merkel is going to negotiate with SPD and form a Grand coalition.