{"id":50371,"date":"2023-01-03T09:58:51","date_gmt":"2023-01-03T07:58:51","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=50371"},"modified":"2025-10-16T14:55:21","modified_gmt":"2025-10-16T11:55:21","slug":"manufacturing-data-from-eu-the-main-focus-for-today-2","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/pt\/manufacturing-data-from-eu-the-main-focus-for-today-2\/","title":{"rendered":"Germany\u2019s HICP print expected later today"},"content":{"rendered":"

The USD<\/strong> eased<\/strong> yesterday starting the year in the reds<\/strong>, possibly being dragged down by the strength of the JPY<\/strong> which has been active over period of expected muted volatility<\/strong>. Investors brace for the Fed\u2019s<\/strong> meeting<\/strong> minutes<\/strong> scheduled for tomorrow<\/strong> where they are expected to sift through the data for further clues into the Fed\u2019s intentions going forward. Gold<\/strong> has been particularly active over the past few sessions as it managed to string three consecutive days in the greens<\/strong> and hit 6 months highs possibly capitalizing on the back of a weaker dollar<\/strong>. The Yen<\/strong> extended its winning streak yesterday<\/strong> and found itself strengthening to a 6-month<\/strong> high<\/strong>. The move was supported by speculations<\/strong> that the Bank of Japan<\/strong> will shift towards a gradual exit from its ultra-loose monetary policy<\/strong> stance. Speculations gained traction in late December where the central bank took the markets by surprise when it announced its YCC modifications<\/strong>, a move considered hawkish by analysts. Not only that, but reports also surfaced that the BOJ<\/strong> is now actively paying more attention to inflation metrics since November\u2019s CPI print<\/strong> indicated a rise to the 3.7% level its highest since 1980\u2019s and almost two times above the 2% target and it is considering raising its inflation forecasts for both 2023 and 2024. Shifting our attention towards today\u2019s financial releases<\/strong>, Germany<\/strong> is expected to deliver its preliminary year on year HICP rate<\/strong> for the month of December and Euro<\/strong> traders<\/strong> will be looking closely at the results of the headline release. According to estimates the year-on-year rate is expected to ease to the 10.7% moving away from the peak of 11.3% reported last month. Should the actual figure meet expectations we may see the Euro weaken<\/strong> as the result would imply that inflation has eased<\/strong> in the month of December, yet the rate remains significantly higher, as much as four times higher<\/strong> than the ECB\u2019s inflation target<\/strong>. Overall, the results should be considered a step towards the right direction however the central bank is by no means done with its tightening efforts. Drawing from President Lagarde\u2019s<\/strong> hawkish<\/strong> press<\/strong> conference<\/strong> following the December interest rate decision and the comments made yesterday by a key ECB policy<\/strong> maker Joachim Nagel<\/strong>, the bank is expected to march on with more rate hikes in the coming meetings to contain runaway inflation. More specifically, the policymaker stated that \u201cwe\u2019re not seeing any wage-price spiral in the sense of a further increase in the inflation rate due to current wage agreements\u201d and highlighted that the central bank should continue tightening. In tomorrow\u2019s early Asian session, yen traders<\/strong> would have to grapple with Japan\u2019s final JibunBK<\/strong> Manufacturing<\/strong> PMI figure for December which will shed more light into how the Japanese manufacturing sector navigates a challenging environment. Should the result post an upside surprise beating the 48.8 figure of last month we may see the Yen strengthen further<\/strong> and find extra support against the dollar, extending its winning streak.<\/p>\n\n\n\n

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