Euro Softens on ZEW Shock, Loonie Dips on CPI, Kiwi Leads
| Action Insight Mid-Day Report 4-15-25 |
Euro Softens on ZEW Shock, Loonie Dips on CPI, Kiwi Leads |
Euro is trading on the softer side in relatively quiet markets today, weighed down by a fresh round of weak economic data. The sharp plunge in German and Eurozone ZEW economic sentiment, triggered largely by mounting uncertainty over US trade policy, has deepened concerns about the region’s growth outlook. Adding to the dovish tone, ECB’s latest bank lending survey revealed that credit standards tightened and corporate loan demand weakened further in Q1, even before the tariff-driven turmoil of early April. Together, these developments strengthen the case for another ECB rate cut when the Governing Council meets this Thursday. Canadian Dollar is also under some pressure following the latest CPI data, which showed headline inflation slowing more than expected. Core measures, including trimmed and common CPI, also came in softer than forecast. The figures mark a welcome reversal from February's surprise inflation spike and give BoC added flexibility to stay on hold at its policy meeting tomorrow. However, having already lowered rates from a peak of 5.00% to the current 2.75%, BoC may opt to preserve remaining policy ammunition while assessing the broader impact of US tariffs. Overall in the currency markets, the New Zealand and Australian Dollars are leading gains for today, buoyed by stabilization in risk sentiment. Sterling is also firmer, as mixed UK labour market data is unlikely to derail BoE’s slow and steady approach to policy normalization. On the weaker end, the Swiss Franc is underperforming the most, followed by Loonie and Euro. Dollar and Yen are trading closer to the middle of the pack.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1289; (P) 1.1357; (R1) 1.1418; More... EUR/USD dips mildly today as consolidation continues below 1.1472. Deeper pull back might be seen but downside should be contained by 1.1145 resistance turned support to bring another rally. On the upside, break of 1.1472 will target 161.8% projection of 1.0358 to 1.0953 from 1.0731 at 1.1694. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | RBA Meeting Minutes | | 06:00 | GBP | Claimant Count Change Mar | 18.7K | 30.3K | 44.2K | 16.5K | | 06:00 | GBP | ILO Unemployment Rate (3M) Feb | 4.40% | 4.40% | 4.40% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Feb | 5.60% | 5.70% | 5.80% | 5.60% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Feb | 5.90% | 6.00% | 5.90% | 5.80% | | 09:00 | EUR | Germany ZEW Economic Sentiment Apr | -14 | 10.6 | 51.6 | | 09:00 | EUR | Germany ZEW Current Situation Apr | -81.2 | -86 | -87.6 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment Apr | -18.5 | 14.2 | 39.8 | | 09:00 | EUR | Eurozone Industrial Production M/M Feb | 1.10% | 0.10% | 0.80% | | 12:15 | CAD | Housing Starts Y/Y Mar | 214K | 238K | 229K | 221K | | 12:30 | CAD | Manufacturing Sales M/M Feb | 0.20% | -0.20% | 1.70% | 1.60% | | 12:30 | CAD | CPI M/M Mar | 0.30% | 0.70% | 1.10% | | 12:30 | CAD | CPI Y/Y Mar | 2.30% | 2.60% | 2.60% | | 12:30 | CAD | CPI Median Y/Y Mar | 2.90% | 2.90% | 2.90% | | 12:30 | CAD | CPI Trimmed Y/Y Mar | 2.80% | 2.90% | 2.90% | | 12:30 | CAD | CPI Common Y/Y Mar | 2.30% | 2.40% | 2.50% | | 12:30 | USD | Empire State Manufacturing Index Apr | -8.1 | -14.8 | -20 | | 12:30 | USD | Import Price Index M/M Mar | -0.10% | 0.10% | 0.40% | 0.20% |
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