Eurozone: Economic confidence in addition to German and Spanish inflation in focus – Danske Bank

The first information about euro area inflation in August is due for release today with the German and Spanish figures and will be the key economic release for today’s session, according to analysts at Danske Bank.

Key Quotes

“In both countries, inflation should be above 1.5% and not far from the ECB's 2% target. However, the French and Italian figures are closer to 1.0%, and the underlying price pressure remains weak across the euro area, meaning the ECB is likely to stay patient, particularly in light of the stronger euro.”

“The euro area economic confidence figures will also be in focus. Consumer sentiment has improved on the positive employment situation and on the past year's high real wage growth. Looking ahead, the stronger euro should be a headwind to industrial confidence over time.”