Single Currency Unmoved By Soft German and Eurozone GDPs
The Euro/Dollar pair remains at 1.1927 level. German Gross Domestic Product of the first quarter marked 0.3%, while the forecast suggested 0.4%. Eurozone Gross Domestic Product indicated 0.4%. German ZEW Economic Sentiment showed -8.2. The projection was at -8.0 points. Eurozone ZEW Economic Sentiment rose to 2.4 pts. Today, the US releases Retail Sales and Core Retail Sales.
German and Eurozone Q1 economic growth data showed a mild slack, which was caused by a soft trade, the flu epidemic, an unusually high number of strikes and an above-average number of holidays. Still, economists claim it was just a blip and soon we’ll see an upward movement. For confirmation, they will have to look into Wednesday’s CPI data.
On Friday, the US presented some upbeat consumption data. That is, the UoM Consumer Sentiment increased to 98.8 in April. The job growth, on the other hand, has slightly lowered as there was a lack of skilled employees. Last week, however, JOLTS Job Openings hit the maximum of 6.6M. Inflation is still weak. The US Labor Department reported that CPI rose by 0.2% in April as increases in the cost of gasoline and rents were tempered by a drop in motor vehicle prices. The core CPI reduced 0.1% in March. On annual basis, the CPI rose by 2.5%, the biggest gain since February 2017. The case of June rate hike remains in store, with funds pricing in 100%.