Along expected lines, the ECB left its benchmark interest rate unchanged at 0.25% and adopted no new stimulus measures at its policy meeting yesterday. However, the Euro slipped against the US Dollar and sterling in yesterday’s trading session after the ECB Chief, Mario Draghi, warned that the strong Euro is a serious concern and if required, the central bank might unveil fresh monetary policy measures in its June 2014 meeting to combat persistently low inflation prevalent in the region. He also stressed that geopolitical tensions in Ukraine might weigh on the Euro area economy, if conditions worsen further.
The single currency is range bound against most of its major counterparts this morning. Earlier today, data indicated that German trade surplus narrowed unexpectedly for March. The recent set of weak data in Germany has raised concerns over the pace of recovery in the nation. With no major domestic data today, next week’s GDP numbers and the final inflation reading from most of the European economies will attract market attention. Additionally, German and Euro zone ZEW sentiment indices are likely to provide hints about the health of the economy during the current quarter.
Now is an excellent time for euro buyers.
Currency Exchange Key Economic Events
UK Manufacturing Production
UK Industrial Production
UK Visible Trade Balance
UK Total Trade Balance
UK Construction Output
UK NIESR GDP Estimate
US Wholesale Inventories
Germany Trade Balance
Italy Industrial Production
Canada Net Change in Employment