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Bavaria July CPI +6.1% vs +6.2% y/y prior

Bavaria July CPI +6.1% vs +6.2% y/y prior

Hesse CPI +6.1% y/yPrior +6.1%Brandenburg CPI +% y/yPrior +6.7%The state readings so far are reflecting just a marginal decline in headline annual inflation from June to July. This does fit with estimates for the national reading later, which is expected to fall from...

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Germany Q2 preliminary GDP 0.0% vs +0.1% q/q expected

Germany Q2 preliminary GDP 0.0% vs +0.1% q/q expected

Prior -0.3%After the negative growth in Q1, the German economy isn't faring that much better in Q2 with a flat showing. But amid the recent concerns and deepening manufacturing recession, don't be surprised to see heightened risks of a stronger downturn in the euro...

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Baden Wuerttemberg July CPI +6.8% vs +6.9% y/y prior

Baden Wuerttemberg July CPI +6.8% vs +6.9% y/y prior

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...

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European equities hold slightly lower at the open today

European equities hold slightly lower at the open today

Eurostoxx -0.3%Germany DAX -0.3%France CAC 40 -0.4%UK FTSE +0.1%Spain IBEX +0.2%Regional stocks got a boost from the ECB yesterday, not before the BOJ report here sent equities reeling in Wall Street trading. Higher yields today is also part of the equation after the...

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Spain July preliminary CPI +2.3% vs +1.6% y/y expected

Spain July preliminary CPI +2.3% vs +1.6% y/y expected

Prior +1.9%HICP +2.1% vs +1.6% y/y expectedPrior +1.6%This isn't a positive development as we also see core annual inflation rising from 5.9% in June to 6.2% in July. This continues to suggest that while there might be some hope for lower price pressures down the...

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Spain Q2 preliminary GDP +0.4% vs +0.4% q/q expected

Spain Q2 preliminary GDP +0.4% vs +0.4% q/q expected

Prior +0.6%; revised to +0.5%That's a decent performance by the Spanish economy once again and it remains one of the few bright spots in Europe. That said, the struggles in the region coming into Q3 is starting to take a stronger toll and it is no exception to the...

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France July preliminary CPI +4.3% vs +4.3% y/y expected

France July preliminary CPI +4.3% vs +4.3% y/y expected

Prior +4.5%HICP +5.0% vs +5.1% y/y expectedPrior +5.3%The slightly lower readings here compared to June is a welcome development for the ECB, after yesterday's change in language. At this juncture, even if there is to be another rate hike after the summer, it will...

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BOJ’s Ueda: Not expecting long-term yields to rise to 1%

BOJ’s Ueda: Not expecting long-term yields to rise to 1%

Will respond to speed and level of long-term rates if they move beyond 0.50%There is still a distance to achieving 2% inflation targetAs mentioned in my earlier posts, it is now a test of the BOJ's appetite to see how much they can tolerate. But at the balance, any...

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Bond market angst after the BOJ adjustment earlier

Bond market angst after the BOJ adjustment earlier

It's not just Japanese yields that are rising today in the aftermath of the BOJ. The impact is reverberating as asset managers and fund houses will have to start thinking more about the longer-term repercussions as well. For now, we are seeing a more immediate impact...

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FX option expiries for 28 July 10am New York cut

FX option expiries for 28 July 10am New York cut

There is just one to take note of, as highlighted in bold.That being for EUR/USD at the 1.1000 mark. Given recent price action since yesterday, the expiries may serve as a defensive layer for sellers to keep price pinned lower in the session ahead. The euro also has...

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North Rhine Westphalia July CPI +5.8% vs +6.2% y/y prior

North Rhine Westphalia July CPI +5.8% vs +6.2% y/y prior

Headline annual inflation for Germany's industrial state is seen coming down and this fits with expectations of a softer set of numbers in July. If the other state readings show a similar trend, this at least helps to afford the ECB some added room in justifying a...

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France Q2 preliminary GDP +0.5% vs +0.1% q/q expected

France Q2 preliminary GDP +0.5% vs +0.1% q/q expected

Prior +0.2%; revised to +0.1%The French economy grew more than anticipated in Q2 but the devil is in the details. Exports were the main contributor to growth on the quarter, with the breakdown showing:Domestic demand -0.1%Inventory changes -0.1%Net foreign trade...

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It’s a close call on a RBA rate hike for next week

It’s a close call on a RBA rate hike for next week

The latest poll by Reuters shows that 20 of 36 economists are expecting the RBA to announce a 25 bps rate hike to 4.35% next week. If so, that will represent the highest cash rate in nearly 12 years. For me, that's still quite a split decision as the other 16...

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