Yet again, optimism and despair around Greece had their impact on the common currency. The upcoming deadline of June 5th might be more serious than the previous ones. The euro did manage to gain back some ground on the back of more upbeat euro-zone data, mostly from Germany and Spain. In the US, good data helped the local currency. The greenback seemed to enjoy every small economic beat while mostly ignoring misses on economic indicators.
EUR/USD daily chart with support and resistance lines on it. Click to enlarge:
German CPI: Monday, states report during the morning, all-German read at 12:00. In April, prices dropped by 0.1% in Germany as oil prices stabilized. No change is expected in the preliminary read for May. This feeds into the read for the whole euro-zone.
Manufacturing PMIs: Monday morning: Spain at 7:15, Italy at 7:45, France at 7:50, Germany at 7:55 and the whole euro-zone at 8:00. According to Markit, Spain enjoyed a good growth rate in the manufacturing sector during April, with 54.2 points, significantly above the 50 point mark that separates growth from contraction. A score of 54.4 points is expected for May. Italy saw a similar score of 53.8 points and now carries expectations for 53.1 points. According to the preliminary number for May, the French PMI ticked up to 49.3 points, just below the barrier. Germany was on the other side with 51.4 points in the early read for May and the whole euro-zone saw a score of 52.3 points. The early numbers will likely be confirmed.
Spanish Employment Change: Tuesday, 7:00. While these numbers change according to the seasons due to Spain’s large tourism industry, the unemployment data from the zone’s fourth largest economy certainly matter. In April, 118.9K jobless got off the lists and a good outcome is also on the cards for May.
