| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Trade Balance (s.a.), bln | April | 14.9 | 16 | 18.4 |
| 06:30 | Switzerland | Consumer Price Index (MoM) | May | 0% | 0.3% | 0.3% |
| 06:30 | Switzerland | Consumer Price Index (YoY) | May | 2.6% | 2.2% | 2.2% |
| 07:50 | France | Services PMI | May | 54.6 | 52.8 | 52.5 |
| 07:55 | Germany | Services PMI | May | 56 | 57.8 | 57.2 |
| 08:00 | Eurozone | Services PMI | May | 56.2 | 55.9 | 55.1 |
| 08:30 | United Kingdom | Purchasing Manager Index Services | May | 55.9 | 55.1 | 55.2 |
| 09:00 | Eurozone | Producer Price Index, MoM | April | -1.3% | -3.1% | -3.2% |
| 09:00 | Eurozone | Producer Price Index (YoY) | April | 5.5% | 1.4% | 1% |
EUR appreciated against most of its major counterparts in the European session on Monday, as investors assessed a bulk of economic releases from the eurozone, including April PPI data, which confirmed that price pressures in the region are easing rapidly, awaiting Christine Lagarde’s testimony in the European Parliament later today.
The single European currency fell versus USD and CAD but rose against the rest of the other major currencies.
Eurostat reported the euro area’s producer prices rose 1.0% y/y in April, decelerating sharply from a downwardly revised 5.5% y/y surge in March. Economists had forecast a 1.4% y/y gain. That was the lowest reading since January 2021, primarily driven by a noticeable decline in energy prices (-8.9% y/y).
Despite more evidence of easing price growth, the ECB’s Governing Council member Boris Vujcic warned that he thinks inflation risks are still tilted upward due to risks coming from the tight labor market and underlying price pressures in the services sector.
Meanwhile, the latest data from S&P Global showed a downward revision to the Eurozone’s eurozone services purchasing managers' index (PMI) for May. According to the final estimate, S&P Global eurozone services PMI came in at 55.1, down from the preliminary estimate of 55.9. Still, the indicator points to a solid growth in activity across the region’s services sector - albeit slower than in April (56.2) - supported by improved demand.
Also, investors continued to digest the report from Germany, the eurozone’s top economy, which showed a surprise rebound in the country’s exports in April of 1.2% m/m to EUR130.4 bln. At the same time, its imports fell 1.7% m/m to EUR112.0 bln. As a result, Germany’s balance of trade recorded a surplus of EUR18.4 bln, its highest level since January 2021.
Investors now look for the European Central Bank president Christine Lagarde’s testimony in the European Parliament, scheduled to begin at 13:00 GMT, which may impact markets’ expectations on the ECB’s rate actions. Markets are seeing at least two more interest rate increases from the ECB.