Euro going from strength to strength

Daily Update - 17th May 2017

Yesterday’s Market

• EUR Gross Domestic Product, ZEW Survey – Current Situation & Economic Sentiment, Trade Balance
• GBP Core Consumer Price Index & Consumer Price Index
• USD Housing Starts, Building Permits & Industrial Production

Yesterday Explained

The Eurozone is increasingly looking like a new safe haven for the investors where Eurozone data are looking equally strong if not better than the US. The data released yesterday showed the Eurozone economy expanded 0.5% in the first quarter.

The point worth noting is the both hard data and soft data in the Eurozone continues to shine, while in the US it is only the soft data that is holding up. However dollar suffered losses with the news that Trump fired FBI's director, James Comey, on the back of Russia supposed involvement in the latest election, fueling political unrest in the world's largest economy.

Today’s Market

• GBP ILO Unemployment Rate & Average Earnings
• EUR Consumer Price Index & Non-monetary Policy ECB Meeting

Today’s Focus

Wednesday brings us reports from Euro zone and UK. First up will be ILO Unemployment Rate which is the number of unemployed workers divided by the total civilian labor force. This will be followed by Average earnings which a key short-term indicator of how levels of pay are changing within the UK economy.

A non-monetary Policy ECB Meeting is scheduled in the morning; however, this may not cause much volatility in the market until the reports come out on next week. Investor focus will be on CPI figures from Euro zone specially after ECB’s dovish approach on the economic policies for euro zone.