Ilya Spivak, Currency Analyst, comments:
“March’s preliminary German CPI report headlines the economic calendar in European hours. Expectations call for the headline year-on-year inflation rate to decline to 1.1 percent, the lowest since August 2010. Weak price growth readings in the Eurozone’s largest economy may fuel concerns about continued disinflation region-wide and drive speculation about a near-term expansion of ECB stimulus efforts, weighing on the Euro. The single currency dropped to a three-week low yesterday.
“The final revision of fourth-quarter UK GDP data is expected to match earlier estimates showing output grew 0.7 percent, confirming a marginal slowdown from the 0.8 percent increase recorded in the three months through September. Absent a material deviation from consensus forecasts, the release seems unlikely to yield a significant response from the British Pound considering its limited implications for the near-term direction of BOE monetary policy.”