Euro May Shrug Off Busy Data Docket, US Dollar May Recover
- Euro may shrug off busy data docket on limited ECB impact
- Fed-speak and PMI data may offer a lifeline to the US Dollar
- Aussie and NZ Dollars rise with Chinese stocks, Pound down
A packed European economic data docket may pass with relatively little fanfare. The preliminary set of May Eurozone PMI readings as well as Germany’s IFO survey of business confidence and a revised look at its first-quarter GDP statistics are all on tap.
A mixed bag of outcomes is expected but the Euro may shrug off whatever results end up crossing the wires. ECB monetary policy seems firmly locked in wait-and-see mode through year-end, so the practical implications of today’s outcomes for the rates outlook and thereby the currency seem limited.
US economic news-flow will enter the spotlight later in the day. An uptick in PMI readings and another round of hawkish-leaning Fed commentary may offer a lifeline to the US Dollar. Lasting follow-through seems unlikely ahead of Wednesday’s release of minutes from this month’s FOMC meeting.
The Australian and New Zealand Dollars narrowly outperformed in generally quiet Asian trade. Prices tracked Chinese and Hong Kong shares upward. The British Pound fell, with the newswires attributing the move to an explosion at a concert in Manchester. The authorities are treating the incident as an act of terrorism.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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