| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:55 | Germany | Manufacturing PMI | May | 42.5 | 45.4 | 45.4 |
| 08:00 | Eurozone | Manufacturing PMI | May | 45.7 | 47.4 | 47.3 |
| 08:30 | United Kingdom | Purchasing Manager Index Manufacturing | May | 49.1 | 51.3 | 51.2 |
EUR traded flat and mixed against other major currencies in the European session on Monday as investors prepared for the announcement of the European Central Bank’s interest rate decision later this week.
The single European currency edged higher versus GBP, AUD and CAD but slipped versus CHF, JPY and USD.
Expectations are for the ECB to deliver a 25-basis-point rate cut when it announces the outcomes of its June meeting on Thursday.
The central bank’s policy statements and its president Lagarde’s comments will draw the particular attention of investors, seeking clues on the further path of the ECB’s interest rates. Another point of interest for markets will be the ECB staff’s updated economic projections.
Markets are now seeing 57 basis points of rate reductions from the ECB this year, according to Reuters. This implies two 25-basis-point rate decreases and a 28% probability of the third move.