Eurozone Inflation Data Supported Euro

Market Reviews

The euro strengthened after positive data on inflation in the Eurozone. Consumer prices rose by 1.5% year-on-year in November, after rising 1.4% in October. Global shares are growing in anticipation of ratification of the tax reform in the United States. The DAX index increased by 1.6%, while the CAC 40 grew by 1.2%. The US dollar remains unstable.

The Bank of Japan will begin its two-day meeting on monetary policy on Wednesday and announce a decision on Thursday. It is expected, that monetary policy will remain unchanged, as the basic consumer price index remains at 0.8%. That is, the short-term policy interest rate will be maintained at -0.1%.

The RBA protocol will be the main event of the upcoming Asian session. Last week, the Australian dollar was stable, supported by strong employment data. But still, the growth of wages remained sluggish. Markets expect that the central bank will not change its monetary policy throughout the entire 2018.