Today we have some potentially unprecedented moves from the European Central Bank (ECB). Economic growth in the Eurozone fails to gather momentum and it appears that the ECB must now act to prevent the Europe from falling into a disinflationary cycle. Draghi hinted at a rate cut at the last press conference and it appears the recent economic data will justify this much needed action.
EU Minimum Bid Rate 11:45-12:30 GMT
- Flash estimate for Eurozone inflation fell below the 0.7% estimate to 0.5%.
- There were 18.75 million people unemployed in April, falling by a paltry 76,000 between March and April.
- The Eurozone economy has expanded by a measly 0.2% for the first quarter of this year.
- The Minimum Bid rate is expected to be cut to within the 0.1- 0.15 range, though many believe that the market will have priced this move into the Euro currencies pairs.
- Banc de Binary analysts predict that there will still be a short term response to potential action from the ECB indicating a downward movement in the EUR/USD.