Eurozone GDP and CPI Preview: Downbeat figures may trigger ECB action and boost EUR/USD

Eurozone growth, inflation, and also employment figures will probably be worrying amid the coronavirus crisis, and get worse in the coming months. Devastating data may trigger more stimulus and boost the euro, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“While the range of economists' estimates is wider than usual, there is no doubt that the currency zone suffered a significant contraction in the first quarter, and that the second quarter will likely be far worse. The economic calendar is pointing to a dive of 3.5% quarterly and 3.1% yearly.” 

“Annual CPI stood at 0.7% in March and core CPI at 1%. It is set to become much worse in April's preliminary release, falling to 0.1% on the headline and 0.7% on the core.”

“Employment data are also due out throughout the morning, with the eurozone jobless rate set to climb from 7.3% to 7.7% for March.”

“Yet if the situation is dire, these hawks may change their minds. Therefore, the worse the data comes out, the higher the chances for stimulus and the better for the euro.”