Article Highlights

  • German import prices flat in May vs. 0.2% expected uptick
  • German prelim CPI showed 0.3% rebound from previous 0.1% drop
  • French consumer spending up by 1.0%, upward revision in previous figure
  • Swiss KOF economic barometer up from 100.1 to 100.4, consensus at 100.2
  • Spanish flash CPI at 0.1% vs. 0.3% consensus and previous 0.2% uptick
  • U.K. current account deficit at 18.5 billion GBP vs. estimated 17.1 billion GBP shortfall
  • U.K. final GDP unchanged at 0.8% for Q1 2014
  • Canadian underlying inflationary figures (RMPI, IPPI) due
  • U.S. UoM consumer sentiment index eyeing upward revision
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Don’t count the euro out! Relatively strong data from France and Germany surprised euro bears in today’s London trading session, as the shared currency got a small boost from better than expected French consumer spending and German preliminary CPI figures.

Consumer spending in France, the euro zone’s second largest economy, showed a 1.0% gain in May while the previous month’s reading enjoyed an upward revision to -0.2% from the initially reported -0.3%. Consumer prices in Germany, the region’s top economy, marked a 0.3% rebound from the previous 0.1% decline. Import prices, however, showed a weaker than expected flat reading instead of the estimated 0.2% increase.

Over in the U.K., data wasn’t so impressive, as the final GDP reading was unchanged at 0.8% while the current account balance turned out to be a disappointment. The deficit stood at 18.5 billion GBP instead of narrowing to the projected 17.1 billion GBP shortfall while the previous figure was downgraded to show a deficit of 23.5 billion GBP.

Switzerland showed an upside surprise in its KOF economic barometer, as the index saw a 100.4 reading, higher than the projected 100.2 figure for June. On top of that, the previous month’s figure was upgraded from 99.8 to 100.1, reflecting stronger economic prospects for the country.

In the next few hours, we’ll get to see underlying inflation figures from Canada, namely the raw materials price index and the industrial product price index. Both reports could reflect stronger price pressures compared to the previous month’s results, which could eventually translate to higher Canadian CPI. Also lined up for today’s New York trading session is the U.S. UoM revised consumer sentiment reading for June, which might be upgraded from 81.2 to 82.2.

Do stay on your toes for potential profit-taking among trending currency pairs as it is nearly the end of the month and the second quarter. Yep, time does fly fast when you’re catching pips! Stay on your toes, fellas!

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