Attention of market participants will be focused on the minutes of the FOMC meeting, which will be released today at 20:00 (GMT+2).
Market participants will thoroughly review the minutes in order to understand further monetary policy plans of the US Fed. FOMC representatives will express their opinion about economic and financial situation in the USA and in the world and their plans related to the monetary policy. The release of the minutes usually has strong effect on the USD.
Today, at 11:00 European consumer price index for April will be also known. It is expected that the index will decline by 0.2% against the previous rise of 0.7% a month ago on annual basis. Weak data will indicate zero growth, or even a deflation, which will have a negative impact on Euro.
The data presented by EUROSTAT showed the decline of the industrial production in Eurozone (In March -0.8% against the forecast of 0.0% and the decline of 0.8% in February). The index has grown slightly on annual basis (0.2% against the forecast of 1.1% and the rise of 0.8% in February). Preliminary GDP released last Friday was low and below the forecast (+0.5% against the forecast of +0.6%; and on annual basis: +1.5% against the forecast of +1.6%).
Efforts of ECB to accelerate inflation and support economic growth in Eurozone have not yet produce effective results, despite the assurance of the key people of ECB headed by president, Mario Draghi that the current monetary policy is adequate and shall produce long-awaited success in the near future.
Meanwhile, positive US data for April, released yesterday (consumer price index, commenced homes construction, industrial production volume and capacity utilization), has boosted the rise in the USD today with the opening of the Asian session. The USD is strengthening all over the market and in the pair EUR/USD.
It is likely that the rise in the USD will continue today until the publication of the FOMC meeting minutes. Further dynamics in the USD will depend on the content of the minutes and US macro-economic data.