Eurozone GDP report

EUR/USD Key event – Eurozone GDP report (May 13th, 12:00 GMT +3)

There were several important economic events last week from the Unites States of America and Eurozone. First of all, these are unemployment rate of USA and NonFarm Payrolls (measures the change in the number of people employed during the previous month, excluding the farming industry). Actual data was much worse than the prediction and experts can hardly believe that there will be a rate hike in the US in June:

In 2016 four rate hikes were expected by market participants, but due to weak CPI numbers and due to specific issues in the labor market these decisions are constantly postponed to a later date.
Unfortunately, there are some specific issues in Eurozone economy as well. Retail Sales data (March) has declined significantly and many experts believe that the leaders of European Central Bank applied an incorrect monetary policy and their plan to cut the interest rate has crashed.

Retail Sales data has a massive impact on CPI and inflation is the key economic aspect of Eurozone economy at the moment.

This week Eurozone GDP (Q1) report will be a key economic event (May 13th, 2016 12:00 GMT +3):

Market participants believe that GDP growth will be doubled compared to the previous quarter and if the actual data are as good as the expectations it will have a positive impact on the value of European currency. In the opposite case, EUR will most likely decrease.

If to speak about the US then there will be a publication of several important economic reports on May 13th 2016 at 15:30 GMT +3. These are “Retail Sales” and “PPI”. Both numbers have a massive impact on the inflation.

EUR/USD chart:

There is still an upward trend on EURUSD D1 chart, but there is a short downward correction at the moment and the indicators of technical analysis “Awesome Oscillator” and “Parabolic SAR” prove it.