ECB might underestimate inflation

News of the day, Wednesday, June 1

European stocks increased today despite worries about the region’s economic growth concerns. The DAX of Germany traded 0.6% higher, the CAC 40 in France increased by 0.4%, and the U.K.’s FTSE 100 edged 0.2%.

The USD edged higher today driven by the Treasury yields increase. The dollar index traded 0.2% higher to 101.995, extending the previous rally.

The government of France will announce the revised economic growth forecasts by early July, according to Finance Minister Bruno Le Maire. The current forecast supposes a 4% growth in 2022.

Deutsche Bank economists expect the European Central Bank policy tightening to extend from a 25 basis points increase to 50 basis points as one of the two interest rate hiking moves. The bank’s experts have expressed that ECB may have underestimated inflation volume.

The price of Brent crude is $117.40, WTI — $116.40, GBP/USD — 1.2601, EUR/USD — 1.0727, and gold costs $1837.40 per ounce.