As it was expected yesterday macroeconomic indices were strong. Service PMI in the eurozone in May was 47.5 vs. estimates for 47.4 and previous figures for 47.0. Manufacturing PMI was 47.8 vs. expectations for 47.1. US Initial Jobless Claims dropped to 340K vs. forecast for 347K. US New Home Sales in April was 454K vs. 429K.
Today positive news is expected. At 10:00 GMT+4 Consumer sentiment index in Germany in May, it is forecast to be 6.2 as well as in April. At the same time German GDP in Q1 (final estimate) is published, no changes are expected, 0.1%. At 12:00 GMT+4 Ifo Business Climate Index in May is issued, it is expected to be 104.6 vs. 104.6 in April.
At 16:30 GMT+4 data on US Durable Goods Orders in April is revealed. It is estimated to be 1.8% vs. -6.9% in March. US Durable goods orders excluding transportation is expected to be 0.6% vs. -1.2% in April.
Technically, if the rate overcomes testing level 1.2929, the first target 1.2956, yesterday's high, opens. The second target is 1.2990, the low of April 29.
