EURUSD. Eurozone’s GDP report (7 June 9:00 GMT)

Last week the ECB had its regular meeting and resolved not to change the deposit facility and interest rates, which tells us there’s trouble with accelerating inflation. Additionally, Mario Draghi made a statement at the press-conference that the inflation rate is forecast to stay low.

CPI is the key economic indicator of the Eurozone economy at the moment, but it remains in a negative zone and it has a massive negative impact on the development of European economy. What is more, it means that the idea to cut the rates did not bring the expected results, because majority of economic data is getting worse:

Retail Sales for April was much worse that expected:

..what is more, Producer Price Index of Eurozone for March was also much lower than the forecast:

However, since the figures from the US labor market aren’t demonstrating a positive dynamic either (despite the fact that Unemployment Rate decreased from 4.9% to 4.7%, NonFarm Payrolls Results were almost 80% worse compared to the previous month), the Federal Reserve committee may be forced to hold off on raising the refinancing rate.

The next important economic data to watch for would be the Changes in the Eurozone’s GDP. If the results turn out to be better than expected, the price of Euro expected to go up.

EURUSD chart:

There was a long downward trend on EURUSD D1 chart, but after the published data from US labor market USD started to decrease against EUR significantly and upper line of Bollinger Bands was broken. It means that correction is possible and further downward rate movement is possible.

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