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Strong fundamental negatives for EUR keep pouring in - RBS

FXStreet (Bali) - According to RBS FX Strategists, weakness in German inflation and inflation expectations should keep the pressure on the ECB and Euro.

Key Quotes

"The headline German CPI estimate for October, released today, unexpectedly slipped from +0.8% y/y to +0.7% y/y on an EU harmonized basis, while Spain’s EU harmonized inflation print fell as expected to -0.2% y/y."

"The weakness in Germany may introduce downside risks to the Euro-area composite HICP estimate tomorrow. Persistently low inflation and still tepid growth remain strong fundamental negatives for the EUR."

"Weakness in inflation and inflation expectations should keep the pressure on the ECB - with the ECB already using tLTROs and ABS / Covered Bond purchases to ease conditions and reportedly considering adding corporate bonds to the universe of purchases, market participants’ focus will likely turn to the ECB’s November meeting next week for a firm commitment to taking all actions necessary to reach its inflation mandate."

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