| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Switzerland | Trade Balance | April | 3.1 | 2.4 | 3.9 |
| 07:00 | Switzerland | Gross Domestic Product (QoQ) | Quarter I | 0.3% | 0.3% | 0.5% |
| 09:00 | Eurozone | Unemployment Rate | April | 6.5% | 6.5% | 6.4% |
EUR traded mixed against other major currencies in the European session on Thursday as investors weighed the data, which showed that economic confidence in the euro area improved in May.
The European Commission reported earlier today that its economic sentiment indicator for the Eurozone rose to 96 points in May from 95.6 in the previous month. This represented the highest reading in four months but was slightly below economists’ forecast of 96.2.
Meanwhile, a report from Eurostat revealed that the Eurozone’s unemployment rate dropped to 6.4% in April from 6.5% in March, indicating that the 20-nation currency bloc’s labour market remains strong.
Markets’ attention is now shifting to Friday’s release of the Eurozone’s flash inflation figures for May. Economists expect it will show consumer prices rose 2.5% YoY this month, slightly accelerating from 2.4% YoY in April, and the core prices increased 2.7% YoY, unchanged compared to April.
Even as the region’s May inflation report comes in hotter than economists anticipate this is unlikely to avert a rate cut at the European Central Bank’s June meeting but could impact its future rate actions.
According to Reuters, markets are now pricing in nearly 60 basis points of policy easing by the ECB in 2024. This implies two 25-basis-point rate decreases and a 40% probability of the third move.