May Eurozone CPI Preview: Inflation Insights

Daily Currency Update

May Eurozone CPI Preview: Inflation Insights

May Eurozone CPI Preview: Inflation Insights

As we head into the middle of the week we see data from the Eurozone and Switzerland. At 12:00 AM, the Eurozone CPI will release the preliminary CPI for May. Expectations are for a 0.2% inflation, down from the previous 0.5%.

Later in the day, at 7:00 PM, Switzerland will release Q1 Gross Domestic Product data. The forecast is for the release to hold at 0.3%, the same as the last quarter. A surprise here may impact the Swiss Franc and set economic expectations moving forward.

The last bit of data is for May Eurozone Consumer Confidence, which will be out at 9:00 PM. Consensus is for -14.3, the same as last month’s number, so this will probably give some insight into consumer sentiment and future spending expectations.

The GBP/USD rallied to a high since March 21, hitting 1.2800 before sellers pushed it down to 1.2755. Currently at 1.2776, if resistance holds, a drop to 1.2700 or 1.2635 is possible. Key support is at 1.2743, with resistance at 1.2787.