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Analysts at TD Securities suggest that following the strong inflation prints on Tuesday (in particular for Germany), they are looking for the Eurozone’s headline April HICP inflation to rise to 1.7% y/y (mkt: 1.6%), while core inflation moves sideways at 1.1% (mkt: 1.0%).

Key Quotes

“Easter effects have played a big role in the national prints released earlier, and most of the strength in April is likely to be unwound in May. A March-April average is our preferred way of assessing current inflation, and our forecasts suggest headline average of 1.55% over the two months (vs 1.5% in Feb) and core of 0.95% (vs 1.0% in Feb)–clearly no sign of an acceleration in price pressures.”

“UK: The April Services PMI is released, and we’re roughly in line with the market looking for it to rise back above the important 50-mark to 50.5 (mkt: 50.3) as the intense Brexit uncertainty leading up to the (original) 29 March deadline fades.”