The Euro was headed for another day of straight gains in large part due to a weakened US Dollar which helped the common currency recoup previous losses. What is keeping gains capped right now is the political situation in Italy. Two initially adversarial groups are attempting to forge an alliance that could put them into a leadership role in Italy’s government; both groups are hostile to the current European Union budget rules. Some currency strategists aren’t overly concerned, pointing out that Italian politics aren’t at present a major factor in the Eurozone, at least not enough to influence the Euro’s long-term momentum.
As reported at 11:12 am (BST) in London, the EUR/USD was trading at $1.20, a gain of 0.26%; the pair earlier hit a session trough of $1.19410. The EUR/GBP was trading at 0.8818 Pence, down 0.01%; the pair has ranged from a low of 0.88100 Pence to a peak of 0.88300 Pence.
Eurozone Market Moving Events to Watch
In the week ahead, the Eurozone will have some potentially market-moving events occurring. Tomorrow, preliminary first quarter GDP figures for Germany will be released; as the largest economy in the Eurozone, a miss in estimates could negatively impact the Euro. A few hours after that, Eurozone GDP figures will be released; economist are predicting that the data will show growth unchanged in the Eurozone, both on a quarter-over-quarter and year-over-year basis. On Wednesday, April’s CPI will be released for Germany and the Eurozone, with analysts predicting no change to the data from the previous periods.