Here is the key factor to keep in mind today for Euro trades:
- Eurozone Industrial Production: The only economic report which is scheduled for release out of the Eurozone today is expected to move the Euro. Economists expected a mixed report on Eurozone industrial production for April as compare to March. Eurozone industrial production contracted by 0.3% in March monthly, but rose 1.8% if compared to the same time in the previous year. Expectations for April call for a monthly increase of 0.4%, but for a slowdown in the annualized figure to a growth rate of only 1.1%. This could result in choppy price action immediately after the release should expectations be indeed confirmed. Given the absence of other economic reports the impact from the Eurozone industrial production report could be greater than it would have been. Forex traders are advised to exercise caution prior to the release and make necessary adjustments to their forex portfolios.
Here are the key factors to keep in mind today for US Dollar trades:
- US PPI Final Demand: Economists expected a monthly increase of 0.4% in the US PPI for May which would be a rare increase in the PPI which has been showing deflation as measured by the PPI. The year-over-year figure is expected to show a contraction of 1.1% which will continue to pose an issues for the US Federal Reserve. Forex traders can compare this data with the 0.4% monthly contraction reported in April and the year-over-year contraction of 1.3%. The core PPI, which is the PPI excluding the volatile food and energy sectors, is expected to show an increase of 0.1% in May monthly and a year-over-year increase of 0.7%. This can be compared to the 0.2% monthly contraction reported in April and the year-over-year increase of 0.8%. The PPI excluding food, energy and trade is expected to increase by 0.2% monthly and 0.9% year-over-year which compares to the 0.1% and 0.7% increase reported in April respectively.
- University of Michigan Consumer Confidence Index: The preliminary reading for the University of Michigan Consumer Confidence Index will be released during the US trading sessions and expectations call for an increase to 91.4 in June from the 90.7 reported in May. Consumer confidence are often volatile and do not reflect the accurate consumer environment. For example, the University of Michigan Consumer Confidence Index has shown solid numbers yet consumer spending has decreased with personal consumption being flat.
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