• This week’s calendar isn’t very exciting and all major events relate to the Eurozone: Thursday’s ECB meeting and the release of Markit’s monthly PMIs the day after. Regarding the latter, the PMIs should confirm that the Eurozone probably exited its technical recession in March, and that the recovery advanced further in April. Predictably, an economic gap – chasm if you will – has opened up between the Euro Area and the US. While the US economy will regain its pre-pandemic output this month, it will take another year before the Euro Area will economy will return to its pre-pandemic level. Hence, the ECB remains as stuck as it ever was in having to stimulate the economy. How that will effect Thursday’s ECB meeting we will show in the preview below.
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