07.01.2014 - Deflation in the euro area made 0.2%

Today have been published data on the index of consumer prices in the euro area, which in December showed a decline of 0.2%. Analysts had expected that the prices in the last month of the year will not change. The reason for such index movement has been the fall in energy prices. Core inflation that excludes energy prices was 0.8%. Investors expect that deflationary risks will force the ECB to launch a full-scale program of quantitative easing, which will lead to a further decline of the euro. We recommend holding short positions on EUR/USD with the objectives of 1.18 and 1.15.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.