EURUSD holds around 1.1250 despite modest European GDP data

Wednesday, May 13, 2015

European equity markets opened higher this morning, following the sharp declines in the last few trading sessions. Concerns have slightly eased regarding Greece’s debt issues after Greece ordered a repayment yesterday to the IMF. The IMF confirmed that Greece did make the EUR 750 mln payment. The funds, however, primarily came from Greece’s own reserves at the IMF.

This morning, the DAX, CAC, IBEX and London equity benchmark indices gained between 0.3% and 0.55%. The French economy grew by 0.7% in Q1 2015 from 0.2% in Q4 2014, meeting analysts’ expectations. However, the German economy grew modestly by 0.3% in Q1 2015 compared to 0.7% in Q4 2014, missing analysts’ estimates of 0.5%.

Despite the mixed European GDP economic data, the euro extended gains within the range and hovered around 1.1250 against the US dollar. The USD index came under renewed pressure this morning and slid lower towards 94.0 against a basket of currencies. Today, the main focus will turn to the release of ECB’s policy meeting as well as US retail sales and import price index data in April. 

EURUSD

EUR Curncy (Euro Spot )  2015-05-13 08-58-42

China’s industrial production increased by 5.9% in April from 5.6% in March, slightly missing analysts’ expectations of 6.0%. Retail sales rose 10% in April versus estimates of a 10.4% rise. The Hang Seng index remained under pressure following the modest economic data and slid lower (-0.5%) towards 27,260. The Nikkei Index extended gains and climbed 0.7% towards 19,770.

Hang Seng index remains under pressure

HSI Index (Hong Kong Hang Seng I 2015-05-13 08-59-32

Regarding the Fed monthly budget yesterday, San Francisco Fed President Williams reported that it was better to make a small interest rate increase earlier than expected rather than delay tightening. New York Fed Head Dudley reiterated that the US Fed was entirely data dependent.

    

Events for today:

0630

CN

Apr

Retail Sales

0630

CN

Apr

Industrial Production

0700

DE

Apr

CPI

0700

DE

Q1

GDP

0930

UK

Apr

Claimant Count

1000

EZ

Mar

Industrial Production

1000

EZ

Q1

GDP

1030

UK

May

Inflation Report

1230

EZ

May

ECB Policy Meeting

1330

US

Apr

Retail Sales

1330

US

Apr

Import Price Index

1500

US

Mar

Business Inventories

1530

US

w/e

EIA Energy Stocks

All times UK Local Time

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