Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).
Germany: Consumer confidence index from Gfk dives a bit in May
In Germany, the consumer confidence index from GfK, evaluating the degree of consumer confidence in the power of economic surge dived to about 10.8 in May against 10.9 in April. The fall of the index actually corresponds to the forecast of leading market experts.
The press release of GfK noted that the surge of geopolitical tensions seems to affect the mood of consumers in the number one economy of the European Union.
Confrontation of the West with Russia in the Syrian conflict has exacerbated and clearly causes growing alarm among consumers in Germany, which in turn affects future economic prospects.
After a stable development in the previous month, economic optimism suffered in April. The indicator of economic expectations in April dived to 37.4 versus an outcome of 45.9 in March. The escalation of the Syrian crisis along with the United States’ protectionist trade policy is harassing consumers and can even affect previously excellent economic prospects. It’s driven by powerful fluctuations in stock markets, which also point to the emerging uncertainty among consumers.
The sub-index of expectations about income in April headed south to 53.5 from 54.9 in March. The indicator of intentions for making major purchases in April jumped to 60.0 from 59.1 in March, which was ensured by the upbeat situation in the labor market.
General conditions on the domestic market still appear to be extremely favorable. Employment is going up literally every month. At the same time unemployment is heading south. As a result, experts recently increased their growth forecasts this year, with most of them suggest that last year the growth of 2.2% could even inch up in 2018.
The next GfK consumer climate research is going to be officially uncovered on May 24, this year.
The European Central Bank will make its policy statement on July 22 at 14:45 MT (GMT+3).
The US inflation will come out today at 15:30 GMT+3. Traders can’t wait to see the numbers as they will impact all the pairs with the USD!
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!