Euro-Zone M3 Falls, Euro-Dollar (EURUSD) Holds Ground

Daily Forex Fundamentals | Written by DailyFX | Sep 25 08 09:00 GMT |

Eurozone M3 money supply growth slowed to 8.8% y/y in August. July data were revised down to 9.1% from 9.3% reported initially. The 3-months moving average, the ECB's preferred target, slowed to 9.2% from 9.6% in the three months to July. At the same time the annual rate of growth of loans to the private sector decreased to 8.8% in August from 9.4% in the previous month. Data are lower than anticipated and the renewed decline in both M3 as well as loan growth suggests that inflation pressures from the monetary side are slowly receding. However, at 9.2% the 3 months rate remains far above the reference value of 4.5%. Equally, at 8.8% the rate of loans to the private sector is robust, with not sign of a credit crunch. So data may point to increased room for rate cuts ahead, but are unlikely to prompt an immediate change of heart at the central bank. Bond futures continued their decline after the release. Meanwhile, the euro-dollar (EURUSD) has recently dipped to hit an intraday low of 1.4695, but has bounced back to hold around 1.4710. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.