| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 05:00 | Japan | Consumer Confidence | May | 38.3 | 38.9 | 36.2 |
| 06:00 | Germany | Gfk Consumer Confidence Survey | June | -24.0 | -22.5 | -20.9 |
| 08:00 | Eurozone | M3 money supply, adjusted y/y | April | 0.9% | 1.3% | 1.3% |
EUR weakened against most of its major rivals in the European session on Wednesday as investors waited for the release of Grermany’s flash inflation figures for May later in the day.
Economists expect the release will show the German inflation rate increased to 2.4% YoY this month from 2.2% YoY in April and the harmonised inflation rate, which the ECB uses, rose to 2.7% YoY from 2.4% YoY in the previous month.
The preliminary estimates from Germany’s major states, released this morning, showed mixed picture, with Saxony (3.1% YoY in May, up from 2.7% YoY in April), Bavaria (2.7% YoY, up from 2.5% YoY) and North Rhine-Westphalia (2.5% YoY, up from 2.3% YoY) recording a rebound in their annual inflation rates, Brandenburg (2.9% YoY, down from 3.0% YoY) posting a deceleration, and Baden-Wuerttemberg (2.1% YoY) and Hesse (1.9% YoY) registering no changes.
Tomorrow, investors will receive preliminary inflation data from Spain. Friday will bring flash inflation estimates for France and the entire Eurozone.
Even as the national flash inflation figures or for the euro area as a whole come in hotter than economists expect, this is unlikely to convince the ECB’s policymakers to refuse a June rate cut, which they had signalled in their recent speeches.