The DAX has posted slight gains and pushed above the symbolic 13,000 level in the Thursday session. Currently, the DAX is at 13,025, up 0.22% on the day. On the release front, there are no German or eurozone indicators on the schedule. On Friday, Germany releases inflation reports and the eurozone publishes current account and trade balance.
The eurozone economy has performed well in 2018, but inflation has lagged behind and remains well below the ECB inflation target of around 2 percent. German Final CPI for April dropped to a flat 0.0%. Although this matched the forecast, this marked a 3-month low. Eurozone inflation indicators followed a similar trend, losing ground in April. Final CPI edged lower to 1.2%, down from 1.3% a month earlier. Final Core CPI followed a similar trend, dropping from 1.0% to 0.7%. Weak inflation levels could have a significant impact on ECB fiscal policy, as policymakers may have to consider extending its stimulus scheme, which is scheduled to run until September.
The DAX hasn’t been making headlines, but the index continues to gain ground. The DAX touched the 1350 line earlier on Thursday, marking its highest level since late January. Investors continue to give a thumbs-up to the robust German economy, but there are some clouds on the horizon. A growing concern is the rising price of crude, which remains above the $70 level. Higher oil prices could trigger higher inflation and hamper economic growth, which could send the markets lower.
The trend is your friend.
Dollar Consolidates ahead of Today’s Event Risk
Economic Fundamental
-
There are no Eurozone or German events
-
2:00 German PPI. Estimate 0.3%
-
2:00 German WPI. Estimate 0.2%
-
4:00 Eurozone Current Account. Estimate 35.1B
-
5:00 Eurozone Trade Balance. Estimate 20.7B
Prev. Close: 12,996 Open: 12,980 Low: 12,979 High: 13,050 Close: 13,029
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.