| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 05:45 | Switzerland | Unemployment Rate (non s.a.) | April | 2.9% | 2.9% | 2.8% |
| 06:45 | France | Industrial Production, m/m | March | 0.7% | 0.2% | 0.2% |
| 07:35 | Switzerland | SNB Chairman Schlegel Speaks | | | | |
| 07:55 | Germany | Services PMI | April | 50.9 | 48.8 | 49 |
| 08:00 | Eurozone | Services PMI | April | 51 | 49.7 | 50.1 |
| 08:30 | United Kingdom | Purchasing Manager Index Services | April | 52.5 | 48.9 | 49.0 |
| 09:00 | Eurozone | Producer Price Index, MoM | March | 0.2% | -1.6% | -1.6% |
| 09:00 | Eurozone | Producer Price Index (YoY) | March | 3% | 2% | 1.9% |
EUR traded mixed against other major currencies in the European session on Tuesday as investors digested news that Friedrich Merz was not elected Germany’s next chancellor in an initial vote in the Bundestag and assessed the final data on the Eurozone’s April services purchasing managers index (PMI) and the region’s March producer price index (PPI) report.
The single European currency strengthened versus AUD and CHF, fell versus GBP, JPY and SEK, and changed little versus USD and CAD.
Friedrich Merz - leader of the CDU/CSU bloc - unexpectedly failed to secure the majority needed to become Germany’s chancellor in the first round of parliamentary voting today. He gained 310 votes against 316 required. The second vote is to be held within 14 days.
S&P Global reported that its final estimates revealed the Eurozone services PMI came in at 50.1 in April, up from a preliminary reading of 49.7. Having declined from 51.0 in March, the indicator was only just above the neutral 50.0 threshold, signalling a near-stagnation of the euro area’s service sector in April.
Eurostat announced that the Eurozone’s PPI fell 1.6% MoM in March, following a 0.2% MoM gain in February. This marked the first monthly decrease since September 2024 (-0.6% MoM) and was in line with economists’ expectations. On a YoY basis, the PPI increased 1.9%, sharply down from 3.0% in the previous month. Economists had predicted a 2.0% YoY advance.
Money markets also looked ahead to the Federal Reserve and the Bank of England’s rate decisions, which are due on Wednesday and Thursday, respectively. The former is expected to keep its key interest rates unchanged, and the latter is anticipated to cut rates by 25 basis points.