The US CPI will come out on Wednesday, May 11, at 15:30 MT time (GMT+3).
ZEW Sentiment Will Help the Euro
Information is not investment advice
What is happening?
Leibniz Centre for European Economic Research (ZEW) will release an economic sentiment index for Germany on January 18, 12:00 GMT+2. This index represents the view of institutional investors and analysts on the current economic conditions. The ZEW survey is historically focused on the German economy, and Germany tends to lead the Eurozone economy, so the Eurozone outlook that is released on the same day tends to be overshadowed by the German data released at the same time.
The importance of the index for the economy
Usually, ZEW index gives more information about economic health as investors and analysts are highly informed about their jobs. Thus, their sentiment is nothing but important for understanding the market. There are no expectations from analysts about the next release. However, the latest reading suggested that hopes for much more substantial growth in the next six months are fading, as Europe's largest economy struggles with the latest developments in the COVID-19 pandemic as well as the persisting supply bottlenecks on production and retail trade.
December reading boosted the volatility in EUR/USD, moving it by 650 points in two hours.
How to trade on ZEW economic sentiment?
Higher numbers mean that economy is recovering, and investors are optimistic, which usually moves the euro higher.
- If the actual number is higher than expected – EUR will rise.
- Otherwise – EUR may slide against GBP and USD.
Check the economic calendar
Instruments to trade: EUR/USD, EUR/JPY, EUR/GBP, EUR/CAD.
The United States Bureau of Economic Analysis will release monthly Personal Consumption Expenditures (PCE) on April 29, 15:30 GMT+3.
United States Bureau of Economic Analysis will release Gross Domestic Product (Advance GDP) on April 28, 15:30 GMT+3.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.