Due to the Whit Monday holiday, half of the 18 western European markets were closed Monday morning. Among the closures was Euro Zone’s largest member economy: Germany. However, when the lights come back on in European banks tomorrow, the German calendar will also be the top contributor to euro-based price action.
Scheduled for release tomorrow (though as usual, there is no official time attached to it) is the preliminary reading of the Consumer Price Index for May. With the ECB meeting on June 6th, the inflation gauge will offer a last second tweak to rate speculation. As it stands, the market is fully pricing in a 25 basis point hike next week that would bring the overnight lending rate to 4.00 percent target. On the other hand, where the central bank goes from there is as unclear as ever.