As expected, inflation climbed to 2.1% in September from 2% in the previous period. This will not be a worry as it is so close to the European Central Bank’s target rate of 2%. There was some good news in the form of the construction output figures in August. Year-on-year, output in the eurozone increased by 2.5% following a downwardly revised 2.2% in the previous month.
The euro traded within a very tight range against sterling throughout the day, but it lost some ground against the dollar. Having said that, movements across the week so far have been fairly limited and it will be interesting to see when the next big move comes and in which direction it is.
The only release of note today is the wholesale prices from Germany which are unlikely to cause any movements in the euro irrespective of what the figures are. Month-over-month, the markets are expecting a slight increase to 0.4% in September from 0.3% the previous month.
