ECB chair Mario Draghi’s forward assessment for the Eurozone proved to be far more downbeat than markets had expected. In his statement, Draghi predicted that that inflation will remain subdued for “some years” to come and that this is likely to be a threat to future growth in the Eurozone.
We see several risks on the horizon for the Euro. Data out of the Euro zone is painting a bleak picture of stagnation and deflation. On Thursday 18th, the ECB’s president Mario Draghi will make a statement to European leaders.
Remarkable strength in the US economy and labor market has increased the chances of interest rate rises in the U.S next year. Next Thursday we will see the US retail sales report, and this will give insight into the all-important November consumer spending data.