Eurozone GDP and US inflation figures will influence the market today

The fibre has recouped some losses following the publication of optimistic data for Germany and regarding the Eurozone’s ZEW economic sentiment.? Recent purchasing manager surveys have also shown an expansion in business activity in the Eurozone. Today, the economic calendar features monthly French final CPI, quarterly employment change and the market will be eyeing the publication of GDP figures for the Eurozone. The EUR/USD pair is looking mint and currently trading at 1.0823. The underlying risks factors for the common currency remain geopolitical tensions which could hurt the growth outlook and render inflation stickier.

Investors will be scrutinising US inflation data today. CPI and core CPI figures will provide greater clarity about the Fed’s policy path with regard to interest rates. Speaking at a banking event in Amsterdam, Fed Chair Powell painted a positive picture of the US economy, stating that growth is projected above trend. He further added that despite recent data indicating higher than forecast inflation in Q1 this year, he remains confident that inflation will slide down. He also reiterated that it is unlikely that the Fed will hike rates. Other data due today include retail sales and the New York empire state manufacturing index. Fed vice Chair for supervision, Michael Barr will be testifying before the House financial services Committee and Fed governor Michelle Bowman will be talking about innovation at a crypto-currency summit. The greenback was trading 104.90 against similar majors at the time of writing.