“The easing in Euro Space inflation in October gives a supply for consolation, notably the sharp drop within the headline quantity, which is now beneath 3% for the primary time in over two years. This could alleviate the squeeze on family buying energy, and will elicit a dovish response from the European Central Financial institution, retrospectively supporting the financial institution’s name to successfully finish its mountaineering cycle. We see it as very doubtless that the following transfer in ECB charges might be decrease, with a primary reduce showing possible earlier than the tip of Q2 subsequent yr. This can be a bearish growth for the euro, notably provided that US charges are prone to stay on maintain till a minimum of the second half of 2024.”