EUR/USD (a 4-hour chart)
It is expected that the ECB will lower interest rates as the latest data showed that the German economy, the main eurozone engine, is stalled.
German economy is slowing and it obviously has difficulty maintaining the pace of a growth, while more and more eurozone countries immersed in the financial crisis. This will probably be enough for the ECB to make the decision which they refuse to accept earlier.
U.S. GDP data, weaker than expected, for the 1st quarter led investors to believe that the U.S. Federal Reserve is unlikely to curtail the program of quantitative easing in the near future.
The growth rate of the economy was weaker than it was expected in the 1st quarter. GDP grew by 2.5% per annum, while the projected growth was 3.2%. Reducing government spending and the growth of imports impacts the economic growth.
We expect data on the Spain GDP this week. According to the forecast, GDP fell again in the 1st quarter of 2013. Meanwhile, the unemployment rate in the euro zone in March, probably rose to a new record high.