Euro dips as price data further dampens ECB hike expectations
The euro falls on weak Spanish and German inflation numbers but the dollar strengthens as Fed policy-maker backs rate hikes
London — The euro dipped and bond yields hit multi-week lows on Thursday as easing inflation in Spain and Germany led investors to row back further on expectations of when the European Central Bank (ECB) might tighten monetary policy. The single currency dipped 0.3% against the dollar and the yield on Germany’s 10-year government bond, the benchmark security for the region, hit a three-week low. Signs of economic strength and strong inflation data — and an acknowledgement of these factors by policy-makers — fuelled talk that the ECB might soon switch out of stimulus mode and follow in the footsteps of the US Federal Reserve, which has embarked on a rate hike cycle. But annual consumer inflation in Spain eased to 2.1% in March, missing Reuters poll forecasts of 2.7%, and regional German data pointed to a similar downturn in Europe’s biggest economy. "The Spanish numbers [are] pretty weak ... and German regional numbers have also seen a fair bit of slowing ... I suspect that’s another...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.