Euro Firms as Lagarde Stays Confident; Silver Surges on Shift from US Assets
| Action Insight Mid-Day 6-5-25 |
Euro Firms as Lagarde Stays Confident; Silver Surges on Shift from US Assets |
Euro surged against Dollar after ECB President Christine Lagarde struck a relatively confident tone in her post-meeting press conference. She downplayed immediate trade war fallout, stating that U.S. tariffs would likely impact growth more in 2026, by which time EU fiscal expansion—particularly military spending—would help cushion the blow. Also, Lagarde emphasized that the ECB is well positioned to respond to prevailing uncertainties. There was no explicit signal of a pause in the easing cycle, but the emphasis on a "meeting-by-meeting" approach suggests the ECB will tread carefully going forward. Meanwhile, US futures ticked up after Chinese state media reported that President Trump and President Xi had held a phone call, providing a modicum of relief amid heightened trade tensions. The news sparked a mild rally in US equity futures and lent support to risk-sensitive currencies like the Australian and Canadian Dollars. However, Dollar itself faced renewed pressure following a surprising jump in initial jobless claims. The data added to a string of disappointing US labor signals this week—weak ADP job growth and declines in ISM employment components—raising the risk of a downside surprise in Friday’s NFP report...... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1371; (P) 1.1403; (R1) 1.1449; More... EUR/USD's rebound from 1.1064 resumed by breaking through 1.1453 today. Intraday bias is back on the upside for 1.1572 high. Strong resistance could be seen there to limit upside, at least on first attempt. On the downside, On the downside, break of 1.1356 support will indicate that the corrective pattern from 1.1572 has started the third leg, and target 1.1209 support. Nevertheless, decisive break of 1.1572 will confirm larger up trend resumption. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y Apr | 2.30% | 2.60% | 2.30% | | 01:30 | AUD | Trade Balance (AUD) Apr | 5.41B | 6.05B | 6.90B | 6.89B | | 01:45 | CNY | Caixin Services PMI May | 51.1 | 51.1 | 50.7 | | 06:00 | EUR | Germany Factory Orders M/M Apr | 0.60% | -1.10% | 3.60% | 3.40% | | 07:00 | CHF | Unemployment Rate May | 2.90% | 2.80% | 2.80% | | 08:30 | GBP | Construction PMI May | 47.9 | 47.2 | 46.6 | | 09:00 | EUR | Eurozone PPI M/M Apr | -2.20% | -1.80% | -1.60% | -1.70% | | 09:00 | EUR | Eurozone PPI Y/Y Apr | 0.70% | 1.20% | 1.90% | | 11:30 | USD | Challenger Job Cuts Y/Y May | 47.00% | 62.70% | | 12:15 | EUR | ECB Deposit Rate | 2.00% | 2.00% | 2.25% | | 12:30 | CAD | Trade Balance (CAD) Apr | -7.1B | 0.2B | -0.5B | -2.3B | | 12:30 | USD | Initial Jobless Claims (May 30) | 247K | 235K | 240K | 239K | | 12:30 | USD | Trade Balance (USD) Apr | -61.6B | -117.2B | -140.5B | -138.3B | | 12:30 | USD | Nonfarm Productivity Q1 | -1.50% | -0.80% | -0.80% | | 12:30 | USD | Unit Labor Costs Q1 | 6.60% | 5.70% | 5.70% | | 12:45 | EUR | ECB Press Conference | | 14:00 | CAD | Ivey PMI May | 48.3 | 47.9 | | 14:30 | USD | Natural Gas Storage | 111B | 101B |
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