Here are the key factors to keep in mind today for Euro trades:
- German Producer Price Index: Germany is the largest economy in the Eurozone and with deflation showing up in the world’s largest economy and the European Central Bank meddling in the Eurobond markets as well as interest rates, inflation reports are a crucial economic indicator to watch out for. Economists expect the Producer Price Index or PPI to show an increase of 0.2% out of Germany for March monthly and an annualized contraction of 1.6%. Forex traders can compare this to February’s increase of 0.1% monthly and annualized contraction of 2.1%. The Euro should feel a bullish impact if expectations for the German PPI are either met or exceeded to the upside.
- Eurozone Construction Output: Economists expect the Eurozone construction sector to show a slowdown in February with Eurozone Construction Output set to contract by 0.3% monthly and increase by 0.9% annualized. Forex traders can compare this to January’s increase of 1.9% monthly and 3.0% annualized.
- European Central Bank QE Purchase Details: Forex traders will get a very important report today which will be released by the ECB. Forex traders should pay close attention to the release on QE Purchase Details which will give a look at how much and where the ECB interfered with bond markets. The Euro is likely to be exposed to a lot of violent trading after the release as forex traders will adjust their positions. Since the ECB decided on its QE the Euro has struggled to maintain rallies which makes today’s report even more important.
Here are the key factors to keep in mind today for New Zealand Dollar trades:
- New Zealand Performance Services Index: The New Zealand service sector has performed stronger in March as compared to February. The Performance Services Index came in at 57.6 in March and forex traders should compare this to February’s upward revised level of 56.0.
- New Zealand Consumer Prices Index: This morning’s report on inflation out of New Zealand offered a disappointment as monthly deflation increased while annualized inflation decreased. The Consumer Prices Index for the first-quarter contracted by 0.3% quarter-over-quarter and rose 0.1% annualized. Economists expected a contraction of 0.2% quarter-over-quarter and an annualized increase of 0.2%. Forex traders can compare this to the fourth-quarter 2014 report which showed a contraction of 0.2% quarter-over-quarter and an annualized increase of 0.8%.
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