| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 09:00 | Eurozone | Industrial production, (MoM) | May | 0% | -1% | -0.6% |
EUR traded flat against other major currencies in the European session on Monday, as better-than-feared Eurozone’s May industrial production data had little impact on investors’ expectations of the European Central Bank's policy path.
Eurostat reported this morning that industrial output in the euro area declined 0.6% MoM in May, following an upwardly revised flat MoM performance (from -0.1% MoM) in April. This marked the first monthly decrease in the region’s industrial production since January but was better than economists’ forecast of a 1% MoM drop. On a YoY basis, the Eurozone’s industrial output fell 2.9%, recording the fifth straight annual reduction.
Meanwhile, the ECB’s Survey on the Access to Finance of Enterprises, released earlier today, revealed that the euro-zone companies lowered their one-year-ahead salaries expectations. Workers’ pay over the next 12 months is now seen to increase by 3.3%, down from 3.8% in the previous survey. In addition, companies also reduced their selling-price forecasts - to 3.0% from 3.3%.
Investors, however, looked past today’s data as they considered them not enough to change the ECB’s rate path. They continue to expect that the central bank’s policymakers will skip a rate move at next week’s meeting, providing themself time to weigh increased political risks, and will deliver another 25-basis-point rate cut in September.