Single Currency Rises to Maximum of Fourteen Months
The single currency has significantly improved, lifting 0.32%. The currency has exceeded 1.14 line for the first time in a year and the rally is expected to resume. This is attributed to Mario Draghi’s statement about the ECB’s policy steps for the future. But, there seem to be some kind of misunderstanding as the President simply intended to reassure markets that the economy is recovering and that it’s better to wait this time of low inflation out. Instead, everybody assumed that ECB is ready for an exit from an ultra-loose monetary policy.
GfK Consumer Climate grew to 10.6. Today, Germany will publish Preliminary Consumer Price Index. We will also look at the US Preliminary Gross Domestic Product and jobless claims. Tomorrow, Germany will show Retail Sales, the Eurozone will publish CPI Flash Estimate and the United States will announce UoM Consumer Sentiment. The US economy is projected to rise 1.2%. Economic data has been weak, especially construction and manufacturing figures. Core Durable Goods increased only 0.1%. Durable Goods dropped 1.1%, the strongest fall in a year. Housing Starts and Building Permits turned out to be a disappointment as well. If Groos Domestic Product of the first quarter misses forecasts, the greenback will soften.