This morning, markets are closely watching a series of key data releases across the Eurozone, with reports from Germany, France, and Italy shaping the economic narrative.
French GDP Growth Supported by Declining Inflation
France’s Q3 GDP is forecasted to rise modestly by 0.3%, buoyed by a drop in the headline inflation rate, which has strengthened consumer spending. This signals a degree of resilience in the French economy despite broader Eurozone challenges.
Germany Struggles with Industrial Slowdown
In Germany, the unemployment rate is expected to remain elevated at 6.1%, reflecting the country’s ongoing industrial slowdown. Key sectors such as automotive and machinery continue to face headwinds from weaker global demand, underscoring the challenges Europe’s largest economy faces in the current climate.
Eurozone Inflation Climbs
Later today, the spotlight will turn to Eurozone CPI inflation data. Headline inflation is anticipated to reach its highest level in three months, climbing to 2.3%. Meanwhile, Core CPI, which excludes volatile items like food and energy, is forecasted to rise to 2.8%.
These figures could have significant implications for monetary policy decisions across the region.
What’s Next for Interest Rates?
Markets are currently pricing in expectations that:
- The Bank of England will hold rates steady in December, with a potential cut on the horizon in February.
- Both the European Central Bank and the Federal Reserve are likely to lower interest rates next month.
These contrasting policy directions have offered some support for the Pound, which continues to show relative strength as the week draws to a close.
Stay Ahead with Qumoney
Understanding these complex market dynamics can help you make informed financial decisions. At Qumoney, our experts provide actionable insights to help businesses and individuals navigate market volatility effectively.
For tailored advice on how these trends could impact your business or financial strategies, contact our team today.