Investors had discovered this morning the Economic Sentiment Indicator (ESI) in the EU: it fell again by -1.0 point to 96.5 as well as in the euro zone (-1.3 point to 97.6 ), a score consistent with expectations.
Germany’s monthly inflation rate rose in August from 7.5% to 7.9% according to the preliminary estimate from the Federal Statistical Office, again in line with the consensus.
‘Energy prices (+35.6%), in particular, have increased considerably since the start of the war in Ukraine and have had a substantial impact on the high inflation rate’, explains Destatis who also points to a 16.6% rise in food prices.
In harmonized data for European comparisons, August inflation is estimated at +8.8% year-on-year and +0.4% sequentially.
The rise of the Euro does not mean a symmetrical decline of the greenback: the ‘Dollar Index’ is also up by 0.2% and it recrosses the threshold of 109: the Dollar indeed takes 0.45% against the Pound and +0.65% against the Swiss Franc and the Canadian Dollar.
The $ is supported by the publication of the monthly survey published by the Conference Board and which came out better than expected, at 103.2 this month, against 95.3 in July (when the consensus expected it around of 98).
The component of consumers’ judgment of their current situation stood at 145.4 against 139.7 last month, while that of expectations came in at 75.1 after 65.6.
The E/$ parity is likely to vary tomorrow with the inflation index in Europe and on Friday with the ‘NFP’, the monthly report on US employment.
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