Here are the key factors to keep in mind today for Euro trades:

• German GDP: Germany is the largest economy in the Eurozone and will report its final revision to the first-quarter GDP. The headline is expected to remain unchanged and show a quarterly increase of 0.3% and an annualized increase of 1.1%. The revisions inside of the GDP report will make the difference for the Euro today. Capital Investment is expected to be revised down from 1.2% to 0.8%, Construction Investment is expected to be revised down from 2.1% to 1.8%, Domestic Demand is expected to be revised up from 0.5% to 0.7%, Exports are expected to be revised down from 1.3% to 0.5%, Imports are expected to be revised up from 1.0% to 1.6%, Private Consumption is expected to be revised down from 0.8% to 0.6% and Government Spending is expected to remain unchanged at 0.2%. The change of the GDP report could pose a challenge for the Euro as some key components have been revised lower. The expected drop in exports is yet another sign of a global economy which is slowing down.
• German IFO Report: Economists expect an overall slowdown to be visible in today’s IFO report for May. The IFO Business Climate Index is expected to come in at 108.3 which would be down 0.3 points from April’s level of 108.6. The IFO Current Assessment Index is expected to come in at 113.5 which would be down 0.4 points from April’s level of 113.9. The IFO Expectations Index is expected to come in at 103.0 which would be down 0.5 points from April’s level of 103.5.
• ECB President Draghi’s speech in Sintra, Portugal: Forex traders should pay attention to the speech by ECB President Draghi as it could give clues about the view of the ECB on the Eurozone economy. Comments about the success of the stimulus program may also provide additional direction for the Euro.

Here are the key factors to keep in mind today for British Pound trades:

• British PSNB: The British government is expected to have borrowed more in April than in March as PSNB is expected to be reported at £7.9 billion. Forex traders can compare this to March where £6.7 billion were borrowed.
• BoE Governor Carney’s speech in Sintra, Portugal: Forex traders could get some future outlook on monetary policy by the Bank of England as well as comments on the health of the UK economy.

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