Outlook for Today's Financial data: focus on the Annual and monthly rates of CPI in the Euro area in June

SMM7 March 17: today's focus on the euro zone June CPI annual rate and monthly rate

In terms of data,

Consumer prices are the main component of overall inflation at the annual and monthly rates of CPI in the euro zone in June. Inflation is important to currency valuations because rising prices will cause the central bank to raise interest rates to control its inflation target. Generally speaking, in a benign inflation environment, inflation is better than expected, which indicates that the market liquidity is fast, the economic development is better than expected, which is good for the domestic currency, on the contrary, it shows that the economy shrinks and is bad for the domestic currency.

The annualized total number of new housing starts in the United States in June shows the strength of the U.S. housing market and helps to analyze the economy as a whole, because the housing market is a key factor in the economy. If the indicator is higher than expected, the dollar should be considered strong / bullish, while if the indicator is lower than expected, the dollar should be considered weak / bearish.

Financial market confidence is a leading indicator of consumer spending, accounting for most of economic activity, according to the preliminary consumer confidence index of the University of Michigan in July. There is a closer correlation between the University of Michigan consumer confidence index and consumer spending. If consumer confidence rises, the bond market sees it as bearish and prices fall, while the stock market usually sees it as positive. The dollar usually seeks a hint from the Fed that if consumer confidence rises, consumption increases, the economy strengthens, the Fed may raise interest rates, and the dollar strengthens accordingly.

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