News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.
EUR Main Focus This Week:
- Economic Data Type: German Industrial Production Data
- Server Time: Monday, 6.00
- Quick view: The market expects data reading for May to rise after the fall of the previous month’s reading. However, PMI’s data on the ongoing weak zone of Europe will affect production.
Quick View: Dovish
- The ECB maintained its benchmark refinancing rate at 0.0%.
- The next ECB meeting is July 25, 2019.
- ECB economic focus data is the Consumer Price Index, Gross Domestic Product, and Unemployment.
- The ECB rejected the interest rate hike in nearly eight years to the second half of 2020 due to concerns over global growth and inflation outlook.
Main Economics Data of ECB
- The unemployment rate in the Euro area fell to 7.7% in March 2019 from 7.8% in the previous month and under the market expectation of 7.8%.
- Euro area Gross Domestic Product grew 1.2% year-on-year in the first quarter of 2019, the same rate as in previous periods and in line with initial estimates.
- The annual inflation rate in the Euro Area fell to 1.2% in May 2019 from 1.7% in the previous month. It was the lowest inflation rate since April last year.
Expected Bias: EUR Bullish
- The significant weakness of the USD currency pushed the euro to its highest level in 3 months. This is because of the dovish tone of the FOMC meeting of the day.
- German and French PMI survey data are better than predictions.