The main release from the eurozone yesterday was the German inflation rate for November. It had been expected to fall to 2.4% from 2.5% the previous month, but it actually dropped to 2.3%. Last time, it hit a ten-year high, so the drop will be welcome news. Prices of services and food are expected to rise at a slower pace.
Business confidence in the eurozone picked up to 1.09 this month from a 17-month low of 1.01 the previous month. It was better than the 0.96 the markets had been expecting. We also saw the German unemployment rate for November which came in at 5% from 5.1% the previous month. It had been expected to hold steady.
Today’s highlight is the eurozone’s unemployment rate for October, which is expected to drop to 8% from 8.1% the previous month. We will also see the flash inflation reading for November which is expected to drop to 2% from 2.2% in October. We will also see German retail sales for October.