Vincent Deluard: French Bond Crisis, Bitcoin Outlook, and Market Risks
StoneX strategist Vincent Deluard warns of rising Treasury yields, bullish on Bitcoin and gold post-midterms.
French CPI rose to 3.0% y/y in September, above expectations of 2.8%, while HICP came in at 3.4%, also above forecast.
Further details on the components are yet to be released.
The CPI tracks price changes for goods and services bought by French households. The HICP follows a harmonised method across euro area countries, enabling cross-border inflation comparisons.
As the euro area's second-largest economy, France's inflation figures offer an early indication of the broader regional inflation trend.
An increase in prices would push inflation further from the ECB's 2% goal, potentially heightening worries about persistent price pressures.
In August, French CPI had already accelerated to 2.4% year-on-year from 2.1%, led by a 16.7% jump in energy prices. Underlying inflation stayed subdued, with core inflation slipping to 1.1% and services inflation easing to 1.9%.
If the data closely matches forecasts, the market response could be muted, as traders may await Germany's September CPI release later today for a more definitive euro area picture.
The relevance to markets is high, as inflation is again central to ECB discussions. A French HICP above 3% would strengthen the case ahead of the full euro area inflation data.
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StoneX strategist Vincent Deluard warns of rising Treasury yields, bullish on Bitcoin and gold post-midterms.
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