Here are the key factors to keep in mind today for Euro trades:
- Eurozone PMI Report: Forex traders will get the final look at the May PMI data out of the Eurozone. Economists expect the Eurozone Composite PMI to remain unchanged at 53.4 and the Eurozone Services PMI to remain unchanged at 53.3. Forex traders may want to pay more attention to the individual releases by France, Germany and Italy which could show fluctuations and therefore impact the final levels in the overall Eurozone report.
- Eurozone Unemployment Rate: Some good news out of the Eurozone labor market today may positively impact the Euro during the session. The Eurozone Unemployment Rate is expected to decrease by 0.1% in April to 11.2%.
- Eurozone Retail Sales: The Eurozone consumer is expected to have made a comeback in April as expectations call for an increase of 0.6%in Eurozone retail sales monthly and an annualized increase of 2.0%. Forex traders can compare this to the 0.8% contraction which was reported in March and the annualized increase of 1.6%.
- ECB Rate Decision and Press Conference: The ECB will announce their decision on interest rates today, but forex traders should pay more attention to the following press conference by ECB President Mario Draghi and his assessment of the stimulus program as well as economic impact thereof. Economists expected the key interest rate to remain unchanged at 0.05%, the marginal lending facility rate to remain unchanged at 0.30% and the deposit facility rate to remain unchanged at -0.20%.
Here are the key factors to keep in mind today for British Pound trades:
- UK Markit/CIPS Services PMI: The UK service sector is expected to show a slowdown in May as the Markit/CIPS Services PMI is expected to come in at 59.2. Forex traders can compare this to April’s Markit/CIPS Services PMI of 59.5.
- UK Markit/CIPS Composite PMI: Economists expect no change in the Markit/CIPS Composite PMI for May as compared to April which is expected to come in at 58.4. The slowdown could derail recent British Pound strength and forex traders need to careful heading into the release of this report.
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