Germany ZEW survey on the agenda for today
The pound had a stellar session yesterday while a slump in risk sentiment in US trading yesterday helped to rein in gains in commodity currencies, with the aussie giving back a positive showing earlier to kick start the new week.
Major currencies are mostly keeping little changed so far today but the risk mood continues to be more on the defensive, so take that into consideration as risk flows might very well be the key factor in driving price action in European trading.
As much as the market has reacted more mixed after the non-farm payrolls report on Friday, it looks like inflation fears are starting to rekindle with 10-year Treasury yields keeping close to 1.60% after rebounding at the end of last week.
0600 GMT - Germany April wholesale price index
Prior release can be found here. Given higher input cost inflation, this should wholesale prices also keep higher in general - feeding into consumer inflation eventually.
0900 GMT - Germany May ZEW survey current situation, expectations
Prior release can be found here. Economic sentiment is expected to improve further but the current situation reading should remain rather subdued. But the focus will be on the expectations reading, which is estimated to tick higher amid vaccine optimism and as the virus situation in Germany is showing some improvement lately.
1000 GMT - US April NFIB small business optimism index
Prior release can be found here. This is an index which measures the opinion of small businesses on the economic conditions in the country.
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.
