Find out more here. The Dax in Germany is –0.7% for the session and the S&P500 is –0.44% in futures trading. Their goal is to connect clients with ultra competitive exchange rates and a uniquely dedicated service whether they choose to trade online or over the telephone. The eurozone DVI rose markedly over the first half of 2020, to its highest level since 2016, though it remained below its historic peaks and within the "moderate risk" category. Member States have reacted decisively with fiscal measures to limit the economic damage caused by the pandemic. This figure remains well below the European Central Bank's target of slightly below 2 percent inflation across the eurozone. Shutterstock. Any news, opinions, research, analysis, values or other information contained on this story, by Exchange Rates UK, its employees, partners or contributors, is provided as general market commentary. Core inflation rate to remain well below target The stability of euro-zone core inflation at just 0.2% in November is further evidence that the decline in inflation this year has not been primarily due to temporary factors. Chart 2: European Office Value Analysis, Q2 2020 (bps) Eurozone inflation is forecast to reach 1.5% pa over the next five years. Over the medium term, inflation is expected to increase as it is assumed that the oil price will pick up and as demand recovers. Inflation forecast is measured in terms of the consumer price index (CPI) or harmonised index of consumer prices (HICP) for euro area countries, the euro area aggregate and the United Kingdom. Since then, the pair has once again faded into its current trading range. December 02, 2020. The resilience of the Euro on negative data and the strong uptrend suggest it will take more than economic releases to reverse the fortunes of EURUSD. Eurozone Construction Activity Continues to Fall, Eurozone Retail Sales Rebound More than Expected, Euro Area Producer Prices Rise More than Expected, Euro Area Deflation Extends for 4th Month, Euro Area Factory Growth Revised Higher: PMI, Eurozone Consumer Morale Confirmed at 6-Month Low, Baltic Dry Index Posts 1st Weekly Loss in Three, South African Stocks End at Over 1-1/2-Year High, Italian Shares Gain for 2nd Session but End Week Lower, French Bourse Rises on Friday to Book Small Weekly Gain. 1991-2020 Data | 2021-2022 Forecast | Calendar | Historical. For the analysis of the other G20 economies, select a country page: For the EU, inflation is forecast at 0.6% in 2020 and 1.3% in 2021. Inflation measures the general evolution of prices. But with inflation this low for quite some time and not much improvement expected ahead, the ECB will certainly take action next week . Latest News on Exchange Rates UK. "The outlook for core inflation in both the US and the eurozone is likely to … Wed 22 Apr 2020 07.38 BST First published on Wed 22 Apr 2020 07.28 BST... 7.38am BST 07:38 Read full article: UK inflation falls as Covid-19 hits clot...→ UK 2020-04-22 09 Dec 2020 - 10 Dec 2020 Online, Virtual. After retiring in his early 30s, James started a... - The Pound to Euro exchange rate is -0.06% lower @ €1.11121 on 02.12.2020 - The Pound to US Dollar exchange rate is -0.09% lower @ $1.34091 on 02.12.2020 Pound Sterling (GBP)... Nordea forecasts: near-term range trading, dollar to slide during 2021 amid increased global risk taking Nordea looks at the outlook for major currencies with forecasts extending out to the... MUFG expects that the global economy will recover strongly in 2021. Direct access to our calendar releases and historical data. Meanwhile, prices of food, alcohol & tobacco is expected to rise at a faster pace (2 percent vs 1.8 percent). EURUSD should do well under this general bullish environment and could extend its gains near to 1.22 where the 2018 consolidation top broke down. IMF estimates that after its peak of 1.8% in 2018, the inflation rate will drop to 1.3% in 2019 and after that will continually grow up until 2024. The key factors generating the increase in deflation vulnerability were the plunge in the HICP inflation rate and collapsing GDP, which led to a surge in the output gap. Overall, the baseline foresees HICP inflation declining from 1.2% in 2019 to 0.3% in 2020 and rising to 0.8% and 1.3% in 2021 and 2022, respectively. Newsletter. Prices fell for both energy products (-8.2 percent, the same as in September) and non-energy industrial goods (-0.1 percent vs -0.3 percent). Risk markets are slightly lower just ahead of the US open on Wednesday. Data from the UK’s office for national statistics showed that the GDP grew at a pace of 15.5% sequentially in Q3 2020. It is defined as the change in the prices of a basket of goods and services that are typically purchased by households. “Big revisions to Eurozone jobs data show that unemployment peaked in July and has since been trending downwards. Publish your articles and forecasts in our website. Unemployment to rise rapidly We expect the eurozone labour market to be hit hard by the economic downturn (see graph above), despite the introduction of government-subsidised temporary unemployment schemes. Strength on negative news shows the market sees the eurozone economy improving over 2021 and the unemployment data out this week supports this theory. The Consumer Price Index in the Euro Area decreased 0.30 percent in November of 2020 over the previous month. Data out earlier this week looked pretty ominous for the eurozone and for the Euro. This is a situation many would associate with a weak currency, but the very next day after the inflation data, the EURUSD broke from its 3–month long consolidation and pushed to exchange rates last seen in 2018. Eurozone inflation remains negative on energy, industrial goods. January 31, 2020 Harmonized inflation inched up to 1.4% in January from December’s 1.3% and therefore marked the highest reading since February 2019, according to a flash estimate released by Eurostat on 31 January. 2020/12/01. Author: Jonathan Lopez. Bert Colijn. Fitch Ratings-London-23 June 2020: Core inflation in the US and the Eurozone is expected to decelerate significantly over the next 18 months given unprecedented declines in GDP and the emergence of historically high levels of spare economic capacity, says Fitch Ratings in its latest economics dashboard. 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