Data from Germany's Federal Statistics Office showed Europe's largest economy expanded by 0.8% in the first quarter, in line with estimates. Compared with a year ago, GDP was up 2.5%.
Exports slowed and were hit by economic weakness in Germany's trading partners and were a drag on growth. These figures do little to encourage the ECB to keep interest rates at these levels and give further reason to cut interest rates in June.
Germany also showed IFO figures from May decreasing which is an early indicator of current conditions and business expectations for the next six months. The closely watched business climate index fell to 110.4 points from 111.2 points in April, suggesting economic activity could slow in coming months
On Friday we also saw inflation figures in Canada released in line with expectations at 0.3% for the month of April and year on year higher at 2.0%.
Earlier this morning we had UK mortgage approvals fall in April from 42,200 to 45,200 in March. Later today in the US, we have durable goods orders and consumer confidence both expected to show a slight improvement.
09.30 - GBP - Mortgage Approvals (Apr) – Came in lower at 42.2K
14.30 - EUR - ECB President Draghi’s Speech
15.00 - USD - Consumer Confidence (May) – Expected to Increase from 82.3 to 83.0
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