Euro Zone CPI Falls To Negative Value, Euro Pressure Dollar Rebound

The euro zone CPI finally dropped to a negative value as expected in the market. This prompted the European Central Bank to expand the pressure of further easing of the QE. The market has been affected by the impact of the euro, and the dollar has been recovering somewhat.

During the day, the United States announced some smaller economic data, which is basically in line with the current embarrassment of the US economic recovery.

University of Michigan consumer

The sharp rise shows that consumers still maintain good confidence in the recovery of the US economy.

On the other hand, US manufacturing output data in September declined again.

The imbalance in the US economic recovery and the weakness of the global overall economic turmoil make the Fed's internal interest rates vary greatly.

At present, the market is expected to see that investors have little hope of raising interest rates at the October meeting of the Fed.

On Friday, the European Union's Statistics Bureau released the euro area consumer price index (HICP), which showed that the euro area price index met market expectations and fell to below 0, 0.1% and 0.1% respectively.

The data confirm that the ECB will soon increase its QE, and the euro will continue to slide within days.

Bond and money markets are ready to face the ECB's cut in deposit rates, regardless of how the ECB's policymakers are making public statements.

UBS and Barclay said traders are expected to reduce the overnight deposit rate of commercial banks held in the central bank.

ECB officials have said it is too early to expand the stimulus policy, and European central bank governor Delaki said more than a year ago that interest rates had reached their lowest point.

Economists predict that the change of the European Central Bank's debt purchase plan or quantitative easing plan will precede the adjustment of more traditional monetary instruments.

Whereas

Inflation has dropped to negative again, and the market is increasingly speculating that the ECB will adjust its policy, perhaps considering the euro.

Yves Mersch, a member of the European central bank executive committee, said that the recent appreciation of the euro has brought downside risks to economic growth and inflation prospects.

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The European Central Bank will act without hesitation in the mid-term weakening of the outlook.

"The main goal of lowering the deposit rate is to push the euro down," said Nishay Patel, a UBS fixed income strategist. This will not be an alternative measure to expand the quantitative easing plan.

China has exposed major industry news on Friday.

Alibaba group offered a takeover of Youku potato group, asking for a price of 3 billion 600 million US dollars to purchase the remaining shares of Youku potatoes.

At present, Alibaba has held 18% of the company's shares.

Analysts believe that if the acquisition is successful, the Alibaba ecosystem will be more complete.

At present, Youku has only received a non binding privatization offer, and no decision has yet been made.

But given the position of the two companies in the Chinese electricity supplier market, the acquisition will cause great fluctuations in the market.