Forexlive European FX news wrap: Eurozone GDP beats, inflation remains in check (for now)

We had numerous knowledge releases this morning however as it has been the case since April 2, the market largely ignored the information given the deal with commerce negotiations.

The Eurozone preliminary Q1 GDP beat expectations however economists already foresaw an enchancment because of tariff-driven frontloading
after firms and shoppers within the US stockpiled European items earlier than
the tariffs began.

Inflation knowledge out of France, Italy and Germany continues to be in test regardless of ticking a bit greater. The information shouldn’t be going to vary the ECB plan of reducing charges once more in June although barring a decision on the tariffs entrance.

We obtained one notable headline early within the morning the place French Finance Minister Lombard mentioned that he mentioned the concept of reciprocal
zero tariffs with US Treasury Secretary Scott Bessent, and Bessent advised him that it was not
unrealistic.

The Swiss sentiment surveys fell by far more than anticipated, which isn’t a shock given the tariffs uncertainty. All around the globe we’re seeing the identical development in smooth knowledge.

Within the American session, we are going to get the Advance US Q1 GDP report the place the vary of expectations could be very broad. The excellent news is that the markets will not care on condition that the GDP report is at all times outdated information. The markets look ahead and that is why the main target is on commerce negotiations.

We may even get the Canadian GDP, the US ADP, the US Employment Value Index and the US PCE Value Index. Yep, you guessed it, it is outdated information. The principle occasion is Trump’s speech on the “Investing in America” occasion due at 16:00 ET/20:00 GMT. Nonetheless, be careful for commerce associated headlines as we proceed to attend for the small print of the primary deal.