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30 Jan 2015
EZ: Deflation concerns as strong as ever - BBH
FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted that data out of Europe today was largely upbeat, though deflation concerns are as strong as ever.
Key Quotes:
"Looking at the wider eurozone, CPI came in at -0.6% y/y vs. -0.5% consensus and -0.2% in December. Eurozone unemployment rate was slightly better than expected at 11.4% in December."
"Germany reported December retail sales at 4.0% y/y vs. 3.6% consensus. France also reported December consumer spending up 0.5% y/y vs. -0.5% expected."
"Spain reported Q4 GDP growth higher than expected at 2.0% y/y vs. 1.6% in Q3 and harmonized CPI at -1.5% y/y. Also, Spain’s current account balance continues to improve, rising to €1.7 bln from just €0.3 bln."
"The numbers show that deflation in Spain is not preventing growth and also that the recovering economy does not stand in the way of Podemos. In the UK, consumer sentiment hit a 5-year high, rising from -4 to 1 in January. Expectations were for a print of -2."
Key Quotes:
"Looking at the wider eurozone, CPI came in at -0.6% y/y vs. -0.5% consensus and -0.2% in December. Eurozone unemployment rate was slightly better than expected at 11.4% in December."
"Germany reported December retail sales at 4.0% y/y vs. 3.6% consensus. France also reported December consumer spending up 0.5% y/y vs. -0.5% expected."
"Spain reported Q4 GDP growth higher than expected at 2.0% y/y vs. 1.6% in Q3 and harmonized CPI at -1.5% y/y. Also, Spain’s current account balance continues to improve, rising to €1.7 bln from just €0.3 bln."
"The numbers show that deflation in Spain is not preventing growth and also that the recovering economy does not stand in the way of Podemos. In the UK, consumer sentiment hit a 5-year high, rising from -4 to 1 in January. Expectations were for a print of -2."