| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 07:00 | Germany | Gfk Consumer Confidence Survey | March | -29.6 | -29 | -29 |
| 09:00 | Eurozone | M3 money supply, adjusted y/y | January | 0.1% | 0.3% | 0.1% |
EUR traded mixed against other major currencies in the European session on Tuesday as investors continued to assess the outlook for the European Central Bank’s interest rates while awaiting the preliminary estimates of the euro area’s consumer price index (CPI) for February later in the week.
The single currency fell versus JPY, AUD, and CAD, and rose versus USD, GBP, and SEK.
The much-anticipated Eurozone’s CPI report is set to be released on Friday. It will be preceded by flash inflation releases in Germany, France and Spain on Thursday.
Economists expect the euro area’s data will show a slowdown in headline CPI rate to 2.5% YoY in February from 2.8% YoY in January and a deceleration of the core measure of inflation, which excludes volatile food and energy prices, to 2.9% YoY from 3.3% YoY.
Recent encouraging economic data from the euro area and the ECB policymakers’ warnings against premature rate cuts prompted markets to scale back their bets on the rate cuts to 90 basis points by year-end.
If preliminary CPI numbers come hotter than anticipated, this will justify the hawkish stance of the ECB’s officials.
Meanwhile, today’s data showed that consumer confidence in Germany was in line with economists’ expectations at -29.0 in February, but consumer confidence in France fell to 89 and missed economists’ forecast of 91.