Forex news from the European trading session – 30 April 2020 Headlines: Markets: – CHF leads, AUD lags on the day – European equities slightly lower; E-minis down 0.1%
Blogs
Heads up: ECB monetary policy meeting decision due later today, what to expect?
Will the ECB do more later today? here By expanding QE and announcing PEPP, I'm sure the ECB would've liked to be in better standing ahead of today's meeting but as seen with the yields spread between Italian and German bonds, the market isn't quite nearly as convinced:
Italy Q1 preliminary GDP -4.7% vs -5.4% q/q expected
Latest data released by Istat – 30 April 2020 – (Q4) -0.3% – GDP -4.8% vs -5.4% y/y expected – Prior +0.1% See here for global coronavirus case data Much like the French, Spanish and overall Eurozone reports earlier, the quarterly economic contraction is the steepest for Italy since the series began in 1995.
Japan economy minister says to consult experts on coronavirus tomorrow to decide on state of emergency
Comments by Japan economy minister, Yasutoshi Nishimura There were yesterday that suggested that it would be extended by another month, but we're still awaiting an official confirmation for now.
The ECB will have some heavy lifting to do later today
The market mood is a little more tepid, as some investors are hoping for something from the ECB later in the day For some of the countries, these reflect less than a month's worth of lockdown measures and yet we are seeing record economic contractions already in the first quarter.
Eurozone Q1 preliminary GDP -3.8% vs -3.8% q/q expected
Latest data released by Eurostat – 30 April 2020 – (Q4) +0.1% – GDP -3.3% vs -3.4% y/y expected – Prior (Q4) +1.0% See here for global coronavirus case data
Eurozone April preliminary CPI +0.4% vs +0.1% y/y expected
Latest data released by Eurostat – 30 April 2020 – +0.7% – Prior +1.0% See here for global coronavirus case data Headline annual inflation slipped to its lowest level since September 2016 but the good news is that core inflation did not fall off as sharply as expected, only easing a little under 1%. That […]
Eurozone March unemployment rate 7.4% vs 7.8% expected
Latest data released by Eurostat – 30 April 2020 – 7.3% See here for global coronavirus case data I wouldn't look too much into this as the mild bump is likely not to accurately reflect the number of unemployed people yet, since it is basing off ILO definitions i.e. a person aged between 15 to […]
Italy's Conte says may further relax lockdown measures after 18 May
Conte says Italy is to evaluate lockdown easing on a regional level See here for global coronavirus case data
Dollar holds its ground in tepid trading so far
The aussie and kiwi back off as stocks lose momentum See here for global coronavirus case data The major currencies snapshot has a sense of risk-off element to it but the movement on the day has been relatively mild for the most part. As stocks fall flat to trade more mixed on the session, the […]