Forex Flash: The Euros future is at the mercy of incoming EU Data - DBS Group

FXstreet.com (Barcelona) - DBS Group analysts believe that the well-being of the euro will depend on incoming EU data.

They see that the European Central Bank (ECB) President Mario Draghi indicated yesterday that the ECB is ready to ease again, possibly at the next month’s governing council meeting, if EU data in the coming weeks remain weak. While data releases are sparse this week, they feel that all eyes will on the ECB’s monthly report scheduled for release on May 9. The important data releases will come next week – May ZEW on May 14, 1Q advance GDP estimate on May 15 and CPI inflation on May 16. They write, “Draghi’s comment brought EUR/USD towards the floor ofits month-old 1.30-1.32 consolidation range. On the cross exchange rates,this keeps EUR soft against the GBP. The Bank of England (BOE) is not expected to expand its balance sheet ahead of BOE Governor Meryvn King’s retirement at end-June.”