Italy and France started the morning with Italian inflation surpassing expectations for October while Spanish GDP missed on both Year over Year and Quarter on Quarter metrics keeping the euro depressed against the USD.
The euro received a slight boost from the stronger GDP print, with German GDP at 1.2% and 0.3%, respectively. According to the GDP report, the country’s positive performance was mainly attributed to private consumption expenditure, while lower energy prices may have had some upside effect on the final figure.
Later today, inflation takes center stage, despite Germany looking to increase its prior read to 10.1%. The dollar may gain ascendency later this afternoon should the U.S. core PCE statistic come in as expected.
After yesterday’s ECB interest rate announcement, markets reacted in a dovish manner leaving the EUR/USD currency pair trading back below parity. ECB officials may look to change this response by making hawkish comments ahead of next week’s FOMC meeting.