Market Outlook: CDS Rates in the Eurozone Remain Relatively Unchanged

Forex - The cost of insuring Euro credit against default using credit default swaps (CDS) remained relatively unchanged ahead of the US inflation data set to be released on Wednesday. Scope Markets' Chief Market Analyst Joshua Mahony stated that an increase in the US Consumer Price Index (CPI) data is expected compared to the previous reading. Mahony noted, "While it seems likely that Wednesday's CPI inflation figure will rise, traders should be cautious in drawing any conclusions, taking into account that this is largely dependent on base effects." According to S&P Global Market Intelligence data, the iTraxx Europe Main index, which tracks Euro investment-grade CDS, remained unchanged at 54 basis points. Meanwhile, the iTraxx Europe Crossover index, which tracks Euro junk bond CDS, rose by 1 basis point to 291 basis points.