Talking Points
- German unemployment is at a reunification low as the economy booms.
- The single-currency is pushing higher as the confidence returns to the area.
- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.
German unemployment hit a 27-year low last month of 5.8% and is expected to tick lower. Will the EUR push higher on the release or will worries remain over lowly inflation?
Recent reports suggest that the ECB may be looking to change their language at the next ECB meeting on June 8th and prepare the markets for policy normalisation ahead. However recent commentary from ECB President Mario Draghi shows the central bank will remain accommodative until inflation becomes ingrained.
The single currency is benefitting from a weak USD, while election worries in the UK continue to weigh on GBP. The latest UK polls point to a hung Parliament, giving EURGBP another upward leg.
Chart: EURGBP Daily Timeframe (February 3 – May 31, 2017).
--- Written by Nick Cawley, Analyst
To contact Nick, email him at Nicholas.cawley@ig.com
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