Euro and DAX Surge on German Spending Boost, Dollar Struggle Continues after Poor ADP
| Action Insight Mid-Day Report 3-5-25 |
Euro and DAX Surge on German Spending Boost, Dollar Struggle Continues after Poor ADP |
Investor sentiment in Europe is exceptionally upbeat today, with German stocks leading the rally as DAX surges over 3%, breaking above the 23k mark. Euro also rallies across the board with solid momentum, with help from rise in Germany's benchmark yield, the overall positive sentiment, as well as a struggling Dollar. The boost to European sentiment was driven by the announcement that Germany’s two biggest parties, CDU/CSU and SPD, have agreed to overhaul borrowing rules to expand defense and infrastructure spending. More importantly, they are accelerating these investment plans rather than waiting out a lengthy coalition-building process. This commitment to boosting government spending is seen as a significant stimulus for the German economy, which has been struggling with recession. The prospect of higher public investment in Europe stands in stark contrast to the growing uncertainty surrounding the US economy. The latest ADP jobs report significantly missed expectations. The report cited policy uncertainty and slowing consumer spending as key factors behind the hiring slowdown. Focuses are now on Friday’s non-farm payrolls report, which could further cement concerns over a softening U.S. labor market.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0522; (P) 1.0575; (R1) 1.0679; More... EUR/USD accelerates further higher today and met 100% projection of 1.0176 to 1.0531 from 1.0358 at 1.0173 already. There is no sign of topping yet. Intraday bias stays on the upside for 161.8% projection at 1.0932 next. On the downside, below 1.0636 minor support will turn intraday bias neutral again first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | AUD | GDP Q/Q Q4 | 0.60% | 0.50% | 0.30% | | 00:30 | JPY | Services PMI Feb F | 53.7 | 53.1 | 53.1 | | 01:45 | CNY | Caixin Services PMI Feb | 51.4 | 50.8 | 51 | | 07:30 | CHF | CPI M/M Feb | 0.60% | 0.50% | -0.10% | | 07:30 | CHF | CPI Y/Y Feb | 0.30% | 0.20% | 0.40% | | 08:50 | EUR | France Services PMI Feb F | 45.3 | 44.5 | 44.5 | | 08:55 | EUR | Germany Services PMI Feb F | 51.1 | 52.2 | 52.2 | | 09:00 | EUR | Eurozone Services PMI Feb F | 50.6 | 50.7 | 50.7 | | 09:30 | GBP | Services PMI Feb F | 51 | 51.1 | 51.1 | | 10:00 | EUR | Eurozone PPI M/M Jan | 0.80% | 0.30% | 0.40% | 0.50% | | 10:00 | EUR | Eurozone PPI Y/Y Jan | 1.80% | 1.40% | 0% | 0.10% | | 13:15 | USD | ADP Employment Change Feb | 77K | 140K | 183K | 186K | | 13:30 | CAD | Labor Productivity Q/Q Q4 | 0.60% | 0.30% | -0.40% | 0.10% | | 14:45 | USD | Services PMI Feb F | 49.7 | 49.7 | | 15:00 | USD | ISM Services PMI Feb | 53 | 52.8 | | 15:00 | USD | Factory Orders M/M Jan | 1.50% | -0.90% | | 15:30 | USD | Crude Oil Inventories | 0.6M | -2.3M | | 19:00 | USD | Fed's Beige Book |
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