Greece’s Consumer Price Index (CPI), calculated on a harmonised year-on-year basis, fell to 1.8% in September from 3.1% previously. This drop indicates a decrease in inflation, which reflects changes in the country’s economic situation.

Factors Influencing Economic Shifts

Several factors contribute to these economic changes, which may also affect other financial markets. For example, the demand for the US dollar has risen as a result of changing risk sentiments amid global financial uncertainties. Gold is starting to recover after a decline during the Asian session, driven by expectations of lower borrowing costs from the US Federal Reserve. In the cryptocurrency market, Bitcoin and other major digital currencies, such as Ethereum and Ripple, have fallen as investors take profits. Meanwhile, Monero (XMR) is gaining value and aiming for its highest level in four months. Market analysts are also looking at forex brokers for 2025 while considering aspects like spreads and leverage. Investing involves risks, so it’s important for individuals to do thorough research before making any decisions. All information provided is for informational purposes only, and there are no guarantees regarding its accuracy or completeness.

Impact of Greek Inflation Drop on Eurozone

The significant decrease in Greek inflation to 1.8% signals a decrease in inflation for the Eurozone. This figure is now closer to the European Central Bank’s target of 2%, which increases the chances of a more cautious approach from policymakers. We see this pressure reflected in the EUR/USD exchange rate, which is nearing the 1.1600 level amid concerns about political stability in France. The ongoing US government shutdown, now in its second week, is creating a short-term demand for the US dollar as a safe option. Historically, prolonged shutdowns, like the 35-day one in late 2018, have led to higher market volatility. We are monitoring for signs of a prolonged deadlock. The comments from Fed Chair Powell are vital as the market is conflicted between current safe-haven demand and expectations of future interest rate cuts. Expectations of two more rate cuts from the Federal Reserve before the year ends are keeping gold prices close to $4,000. We see buying on dips in this range as a smart strategy to take advantage of the Fed’s dovish outlook. In a scenario where yields are expected to drop, non-yielding assets like gold become more appealing. This “unusually cloudy” economic environment suggests increased volatility across asset classes. Traders should think about strategies that benefit from price fluctuations, such as buying options on major indices. The CBOE Volatility Index (VIX) has risen over 8% in the past week, now trading around 19.5, reflecting growing market anxiety. Create your live VT Markets account and start trading now.

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