Euro unfazed after Eurozone CPI and GDP data

Eurozone data fails to inspire

CPI at 0.5%, core at 0.8% and GDP at 1.6% are not numbers that will have the ECB scaling back QE anytime soon. They"re also not numbers that will cause them to throw another kitchen sink at the economy either.

They are numbers that will keep the ECB on its current path for the foreseeable future and well past March 2017, or at least that"s what they"ll tell us all in December. We have five months until March and even if CPI ticks up a point each month, that would still only put CPI at 1.0% and the core at 1.3%, which is still not enough.

I"m expecting the ECB to talk about extending QE but any timeline will be full of ifs buts and maybes. What they say in Dec might change in March, if we see those types of numbers by then. Draghi won"t say anything in Dec that would cause the euro to change its current mood so he"ll just buy himself five months by giving us some dovish chatter about the most the ECB could do with QE.

For now, the euro barely moved 5 pips, which tells you everything you need to know.

Euro unfazed after Eurozone CPI and GDP data
Euro unfazed after Eurozone CPI and GDP data
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