Traders Await Speech ECB Lane On Inflation

Traders and investors await the speech by European Central Bank’s Chief Economist Philip Lane, Wednesday, before the IMF webinar as the debate about inflation as well as its impact is still far from coming to an end.

Markets have witnessed a significant relief in shares, equity and bond markets since August, but this was short-lived despite the fact that there are several other signs that the soft inflation still raises taper timing questions.

Data released this morning in Europe show that UK inflation hit nine-years high last month after the biggest monthly jump in the annual rate in at least 24 years.

Investors have other concerns regarding other signs of a slowdown in the world’s number two economy. China’s factory and retail sectors faltered last month with output and sales growth hitting one-year lows coinciding with fresh coronavirus waves and supply disruptions significantly increased.

DXY stood at 92.536, about 0.2% lower from Tuesday, when it dropped following the inflation data only to recover on haven demand as stocks slid on Wall Street. Inflation numbers provided no answers to the market’s dilemma around the timing of the Federal Reserve’s tapering.