German court to rule on the legality of ECB's QE program
Economic data releases should take a backseat during the session but the key risk event to watch out for involves the euro, with the German constitutional court set to decide on a ruling on the ECB's QE program.
0630 GMT - Switzerland April CPI figures
Prior report can be found here. Inflation pressures are expected to decline further amid weaker energy prices and the impact of the virus outbreak, so that should be reflected here.
0830 GMT - UK April final services, composite PMI
The preliminary release can be found here. As this is the final release, it shouldn't do much to shift the dial in the market.
0900 GMT - Eurozone March PPI figures
Prior release can be found here. A lagging and proxy indicator of inflation in the euro area economy, which is also reflecting weaker price pressures. A minor data point.
The German court ruling is expected some time around 0800 GMT but just take note that these things can come a bit earlier or later most of the time. Relatively speaking, they should side with the ECB - much like the ECJ has - despite all the commotion.
The risk here is that they don't and that could present new legal complications considering that this will involve potential limitations for the Bundesbank in being part of ECB policies.
That said, the big unknown will involve the recently unveiled PEPP since it comes with more relaxed restrictions on bond purchases i.e. issuer limits as mentioned here.
However, any major ruling on that is unlikely to take place any time soon but it could present a legal challenge for the central bank in trying to get help to virus-hit economies like Italy should we see things escalate in the coming months. It's all about sentiment mostly.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.