The British monthly GDP is announced on Friday at 09:00 MT time.
Euro zone first-quarter economic surge is stronger than anticipated
In the first quarter, the euro zone economy rallied more than anticipated in the first quarter, bouncing off a dive in the second half of last year, while unemployment headed south to its lowest value for more than ten years, as Tuesday’s data revealed.
However, financial analysts told that the numbers gave the ECB minor indication of whether to proceed with stimulating surge with loose monetary policy or to get down to tightening.
Eurostat, the EU’s statistics office informed that as follows from a preliminary forecast GDP in the 19 EU countries went up by 0.4% quarter-on-quarter for the first three months of this year, soaring from 0.2% in the fourth quarter of last year and 0.1% in the third quarter.
Year-on-year, euro zone GDP headed north by 1.2%, which is the same rally as in the last quarter of the previous year. The Eurostat data comes with a forecast by Germany of first-quarter GDP surge in Europe's number one economy that hasn’t been uncovered yet.
Financial analysts had hoped for a 0.3% quarterly rally as well as a 1.1% annual expansion.
GDP surge should hover about 0.3% in the remainder of 2019, which is below ECB as well as European Commission estimates of surge at 0.4% in the second half of this year.
The ECB that put off tightening monetary policy at the end of 2018 against the backdrop of persistently dismal inflation, had anticipated the first-quarter surge of 0.2%, speeding up to 0.3% in the second quarter.
Additionally, Eurostat told that euro zone unemployment went down to 7.7% of the workforce last month with 12.630 million folks looking for jobs, which is the lowest rate since September 2008, versus 7.8% of the workforce or 12.804 million employees in February.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.