-ECB
The EUR/USD currency pair moved closer to the 1.35-mark on Thursday, despite positive data from the industrial sector and confident comments from the ECB. It seems that effects of the latest ECB's meeting are finally feeding through markets and a move below 1.35 looks almost inevitable.
A report from the Eurostat showed industrial output in the 18-nation's bloc rebounded in April, even outpacing estimates, meaning the economy is building up steam. Production from factories, energy companies and other utilities climbed 0.8% in the fourth month, following a 0.3% drop a month earlier and beating expectations for a 0.4% hike. Prospects, however, are not so bright, as earlier, the forward-looking PMI index showed activity in the sector eased in May, with companies cutting prices for the 26th straight month.
Another report, which, in theory, should have pushed the single currency higher, was the ECB monthly bulletin. The central bank claimed there is no risk of deflation in the Eurozone, however, also warned that a period of positive, but sluggish inflation, may also require additional monetary easing. The ECB also compared the current situation with the one seen in Hong Kong in early 2000s and the deflationary spiral that gripped the world's third largest economy. There are similar signs in the Eurozone, hence, the report may somehow highlight fresh, upcoming action.
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