Greece is set to meet its €300m obligation to the IMF on 5 June and Greek negotiators are optimistic about a potential deal, the risk is that creditors become impatient and propose a "take-it-or-leave-it" deal in the coming days.
We look forward to no policy action on coming Wednesday and only minor fine-tunings to staff projections. Most of the interesting points are likely to come out during the press conference, with questions focused on the ECB's communication policy, the solvency of Greek banks, reasons for the recent bond sell-off and possibly views on exit strategies for the ECB.
Euro final PMI (Slightly poor manufacture sector contribution)
Q1 GDP collapsed in Euro zone, eying on consumption
Net exports and capex remain disappointing.
Unemployment rate in Germany has fallen below the structural unemployment rate.
Flash HICP inflation is set to print at 0.2% YoY mainly due to rising fuel and food prices.
Technical watch:
As anticipated bearish momentum continued on this pair. The bearish candles such as bearish hanging man occurred followed by bearish engulfing pattern which was traced out in previous posts.
RSI (14) suggesting the trend remains intact as RSI curve moving in downward convergence with price band. %D line crossover at around 75 levels is also substantiating bearish trend.
