Despite the fact that officials from the European Central Bank continued to stress their hawkishness, the Euro erased all of its gains and then some. The move did not come until the US session as the upside surprises to Eurozone data kept the Euro hovering around 1.36 until the open of the US session.
The data indicated that French wage growth accelerated in the first quarter along with non-farm payrolls. Eurozone CPI remained unchanged at 1.9 percent, which was slightly stronger than market expectations. The ECB is set to release their monthly report tomorrow and we expect the details to contain the same hawkish tone. Growth and inflation data give us no reason to question whether the ECB will follow through with their plans to raise interest rates next month