Today is one of the most volatile days of the week. The day began traditionally with news from Australia, where the April report on the trade balance was published. The Australian economy is still able to maintain a trade surplus, but it has decreased slightly compared to the previous month. At the same time, the volume of exports and imports grew synchronously by 3%, and investors expected a surplus growth.
Today can also be called a key day for those who invest in the euro because today the ECB is expected to take their decision on the rate, as well as provide the quarterly report on the Eurozone GDP. Following the meeting, the euro may be under pressure. In addition, the situation around Italy and the beginning of the procedure for imposing a fine on Italy for exceeding the budget deficit negatively affects the cost of the euro.
In the afternoon reports are expected on the balance of trade in the US and Canada, the PMI index of business activity by Ivey in Canada, as well as reports on the employment market in the US. Thus, during the whole day we expect a rich news background that will affect the volatility of all key currencies. At the same time, the CAD and the USD have high chances for support based on the published macroeconomic reports. In addition, these currencies can recover from the fall in the previous days of this week.
