|06:30||Switzerland||Retail Sales (MoM)||March||0.5%|| ||-0.1%|
|06:30||Switzerland||Retail Sales Y/Y||March||-0.5%|| ||-1.9%|
|07:00||Switzerland||KOF Leading Indicator||April||99.2||98.1||96.4|
|07:55||Germany||Unemployment Rate s.a. ||April||5.6%||5.6%||5.6%|
|08:00||Germany||GDP (QoQ)||Quarter I||-0.5%||0.2%||0%|
|08:00||Germany||GDP (YoY)||Quarter I||0.8%||0.3%||-0.1%|
|09:00||Eurozone||GDP (YoY)||Quarter I||1.8%||1.4%||1.3%|
|09:00||Eurozone||GDP (QoQ)||Quarter I||0%||0.2%||0.1%|
USD strengthened against other major currencies in the European session on Friday as investors digested disappointing economic data from the euro area and prepared for the release of the core personal consumption expenditures (PCE) price index, the preferred inflation measure of the Federal Reserve, later in the day.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, jumped by 0.53% to 102.04.
Yesterday’s release of the preliminary GDP numbers for the first quarter revealed that U.S. economic growth slowed to an annualized rate of 1.1%, while core inflation pressures quickened to 4.9%, raising expectations for another rate hike at the Fed’s meeting next week.
According to CME FedWatch Tool, markers now see an 88% probability that the Fed will increase its rates by 25 basis points next week to 5.00-5.25%.
Meanwhile, investors’ sentiment was dented by data showing the eurozone’s economy grew only 0.1% q/q in the first quarter of 2023 after a flat performance in the fourth quarter of 2022. Economists had forecast a 0.2% q/q increase. The German economy, the largest one in the region, was unchanged q/q in the first quarter, following a 0.5% q/q contraction in the previous quarter. Economists had predicted an advance of 0.2% q/q. Weeker-than-expected data from Europe added to concerns about a global economic slowdown.