The Consumer Price Index, which is due out this afternoon, is the main focus of investors' interest. The CPI is anticipated to increase by 0.1 percent from the prior month to 1.1 percent. The United States currently has the highest inflation rate in 40 years at 8.6 percent. Although the US has not revealed any significant economic data in the last 24 hours, traders have kept up with the Federal Reserve's remarks. Ms. George informed the central bank yesterday afternoon that it must take action to control inflation and lower it to its target of 2%.
She did, however, add that she is unsure whether the bank should raise interest rates by 75 basis points due to potential negative effects on the economy. Ms. George, though, is one of the select few Fed bankers who thinks a 75 basis point increase would be excessive. The ZEW business confidence index in Germany was the primary publication for the Eurozone yesterday (The Centre for European Economic Research). The indicator dropped dramatically from -28.0 to -53.8, a level that is seen to be extraordinarily low and even lower than when the economy was on lockdown.
The market has also taken into account Mr. Dombrovskis' most recent remarks, in which he stated that the development of the Eurozone economy appears to be stable this year. It will probably start to decline, though, as the year draws to a close. According to the official, inflation predictions will be updated higher.
The market will mostly be paying attention to the price movement and June's CPI statistics throughout the day. The price's effort to stabilize below the parity threshold is being closely watched by traders.
