fxs_header_sponsor_anchor

News

Eurozone inflation expectations hit fresh seven-year highs above ECB’s 2% target

Against the backdrop of rising energy prices and supply chain bottlenecks, Eurozone inflation expectations reached the highest levels in seven years at 2.0509% on Tuesday.

After several months of high inflation readings in the Eurozone, the inflation expectations amongst the old continent’s bond investors have surged past the European Central Bank's (ECB) target of 2%.

However, the ECB policymakers continue to downplay concerns over rising inflation, as the focus this week remains on the central bank’s plan on the withdrawal of the pandemic support measures.  

Analysts at ING Bank note, “rising inflation swaps will be a key topic at Thursday's ECB meeting. The persistent inflation scare is seeing expectations tilt towards tighter policies, and any pushback by the ECB may remain confined to the very front-end pricing."

Across the Atlantic, “US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data jumped to the highest levels last seen during August 2006 by the end of Monday’s North American trading,” FXStreet Analyst Anil Panchal explains.

Related reads

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.