Market Information Friday 26 November 2021

The European Central Bank (ECB) expects inflation to continue to rise for the remainder of this year. Analysts also expect that the ECB will raise its inflation expectations in the coming year. It is expected that this higher inflation expectation also means that the ECB will extend its bond purchase program (PEPP) or will use it more flexibly. Currently it is clear that this fund will remain in place until the end of March 2022.

In the third quarter of this year, the German economy grew by 1.7%. This was revealed by data from the national German statistics office Destatis published yesterday. On an annual basis, the increase was 2.25%. The German economy is thus still 1.1% smaller than it was before the outbreak of the coronavirus in the fourth quarter of 2019.

The value of the US dollar has risen significantly against the Euro in recent weeks. At an exchange rate of one Euro for 1.1140 dollar, there will be technical support for the Euro. The Euro did quote above 1.12 dollar again on Thursday after dropping to 1.1187. The dollar’s rise is attributed in part to the extraordinary drop in new unemployment claims in the United States. The lowest number since 1969.

The 6M Euribor decreased with 1 basis point to -0.54% compared to previous business day. The 10Y Swap decreased with 2 basis points to 0.21% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.