A busy start to Tuesday’s economic calendar, with high impacting data being released across Europe this morning.
Germany kicks off the day with Employment and Gross Domestic Product releases, with the latter being a key indicator as to how the Eurozone’s largest economy is fairing. Markets are expecting a small rise to 0.1% growth, up from last quarters -0.3%.
The European Central Bank are set to announce their inflation reports this morning, with expectations that inflation will remain unchanged at 2.4%. Anything below the 2.4% forecasted will further enhance the possibility of a June 6th rate cut for the ECB.
Looking ahead this week the UK releases its Purchasing Managers Index for Manufacturing, with investors expecting a decline in the manufacturing sector to 48.7 which falls below the growth mark.
For the US the key releases will come on Friday, with Employment and ISM Non-Manufacturing Surveys the main releases at the end of the week.
On the currency front the pound clawed back its losses against the Euro yesterday, creeping back above the yearly average.
As for the pound to dollar rate, the pound has managed to gain some strength. Gaining 200 points on last weeks low.