Week in FX Europe – Prices in Central Europe Are In Focus

Spare a thought for the CEE3 ensemble, otherwise know as the HUF, CZK or PLN next week. This Friday has seen many investors being steam rolled over by the magnitude and speed of the EUR, JPY and CHF moves. Next week, for a period at least, a different market pace is required when Central European inflation becomes a focus.

Analysts expect a tamer Polish, but a slightly faster Hungarian rate of inflation to catch most market participant’s attention.

Polish citizens could actually witness their inflation threat ease, as economic deceleration in the country remains. The markets are sure to blame the obvious reasons, falling food and fuel prices, a not so-hot job market and a suspect private consumption rate.

On the other hand, the Hungarians could be looking at an opposing rate of inflation scenario, a rate on the rise by year-end due to the ‘one-off’ pricing model. To the rest of the world we know it as taxes or tolls!

The Czechs producer price growth for last month expects to show annual growth, mostly on higher food prices, but the bigger picture reading is something just above that of Poland, as crude prices have fallen.

 

WEEK AHEAD

  • EUR German Consumer Price Index
  • GBP Consumer Price Index
  • USD Producer Price Index
  • EUR Euro-zone Consumer Price Index
  • USD U.S. Federal Reserve Releases Beige Book
  • EUR ECB Publishes Monthly Report
  • AUD Unemployment Rate
  • NZD Consumer Prices Index (YoY)
  • CNY Real GDP
  • USD U. of Michigan Confidence

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Dean Popplewell

Dean Popplewell

Director of Currency Analysis and Research at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2007, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell