Home / Blog / Category / Fundamental Analysis / French Election Boosts Euro: Eurozone CPI Estimates and Powell’s ECB Forum Speech in Focus
1 July 2024 | FXGT.com

French Election Boosts Euro: Eurozone CPI Estimates and Powell’s ECB Forum Speech in Focus

  • French Elections: The euro experienced an increase on Monday morning following the initial round of France’s election, which resulted in the far-right party taking the lead, albeit by a smaller margin than anticipated. Marine Le Pen’s far-right National Rally emerged as the winner in the initial round of France’s parliamentary elections on Sunday.
  • US Economic Data: Final GDP figures for the first quarter revealed a 1.4% annual growth rate, the slowest since spring 2022. Jobless claims reached a more than two-year high, indicating a weakening labour market.
  • US Inflation Data: In May, the PCE Index fell to 2.6%, the lowest annual inflation rate in over three years, though it remains above the Fed’s 2% target. This prompted traders to increase their expectations for a 25-basis point rate cut at the Fed’s September meeting, with market odds rising above 60%.
  • German CPI Drives ECB Speculation: A cooler-than-expected CPI report in Germany drove speculation of further ECB rate cuts this year. Germany’s CPI inflation rate decreased to 2.2% in June, with the EU figure also dropping to 2.5%, lower than expected.
  • Upcoming Events for the Euro: The main event on the eurozone calendar this week is the release of June’s flash CPI estimates, scheduled for tomorrow. The ECB’s forum in Sintra, taking place from today through Wednesday, will include crucial discussions on policy and inflation, with notable speakers such as ECB President Christine Lagarde and Fed Chair Jerome Powell. Additionally, the ECB minutes for June are set to be published on Thursday.
  • Upcoming Events for the US Dollar: US traders have a busy week ahead with several important data releases, including the JOLTs and ADP reports, as well as the ISM Manufacturing and Services PMIs. The FOMC will release the Minutes of its June meeting, and the week will conclude with the highly anticipated June Nonfarm Payrolls report.
Help us improve this article.
Disclaimer: Any material and information included herein are intended for general marketing purposes only and does not constitute investment advice or recommendation nor an invitation to acquire any financial instrument and/or be involved in any financial transaction. The investor is solely responsible for the risk of his investment decisions and if considers appropriate, he should seek relevant independent professional advice before making any decision. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. Please read full Non-Independent Investment Research Disclaimer here. Risk Disclosure: CFDs are complex instruments and carry a high level of risk of losing money. Read full Risk Disclosure here .

Blog Search

Categories

Blog Categories

Tag

Blog Tags

Register and Share Buttons EN

Register

Loved our latest article?

Share it with your friends and followers!

Copied to clipboard
To top

Important Note!

We use cookies to ensure you get the best experience on our website.

By clicking ‘Agree,’ you accept our use of cookies as outlined in our cookies policy, and confirm that you are not a resident of the EU or UK in line with our policy of not offering financial services to those regions.

Leveraged products may not be suitable for everyone and may result in loss of all your capital. Please ensure you fully understand the risks involved and whether trading is appropriate for you. Read Full Risk Disclosure here.