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#1 21-05-2019 09:11:07

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From: Paris - France
Registered: 21-12-2009
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EUR/USD: Danske Bank issues warning regarding risky "Super Thursday"

EUR/USD: Danske Bank issues warning regarding risky "Super Thursday" that awaits euro

Although this week began with a Monday that was calm from a macroeconomic point of view, the rest of the week will be quite busy, and in fact, the next few days may prove to be crucial for the short-term evolution of the euro.

This is indeed what Danske Bank points out in an analysis published this last weekend:

"In the euro zone, we will see a "Super Thursday", with the German and euro zone PMI reports, the German IFO and the ECB minutes. The gloomy SMIs of recent months have been somewhat at odds with other brighter macroeconomic data. Despite GDP growth of 0.4% compared to the first quarter, the euro area manufacturing PMI remained below the 50-point recession threshold for the 3rd consecutive month in April, while the services sector still seemed to be supporting growth.

We expect a very limited rebound in the manufacturing index to 48.3 as a result of the improved order situation in the April figures. The latest negative developments in the US-China trade negotiations could weigh down on the SMIs and the IFO, also to be published on Thursday. Thus, we see the possibility of a decline in the expectations component, while we expect some stabilisation in terms of the current business climate.

The 11 April ECB meeting minutes may not be relevant to the forex. Although we will be interested in the discussion on inflation and growth prospects in order to assess Mario Draghi's message, we doubt that the minutes will contain any new information that will influence the EUR/USD.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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