Euro area inflation to remain in deflation territory – Danske Bank

By FXStreet Research Team at Danske Bank, suggests that the Euro area inflation figure for March is due today and we expect it to remain in deflation territory.

Key Quotes

“This should occur because the drag from energy price inflation is set to go up despite the higher oil price. This is caused by the oil price being at a higher level last year, hence taking the yearly inflation rate lower. Core inflation will also be in focus after it declined to 0.8% in February from 1.0% in January. We look for higher core inflation in March as the early timing of Easter will be supportive. That said, the ECB’s updated core inflation forecast of 1.1% on average in 2016 still looks optimistic to us.

Today, Chicago Fed’s Evans and New York Fed’s Dudley are scheduled to speak.”
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Source:: FX Street