The main focus this week will be on the Federal Reserve policy meeting minutes. Eurozone inflation figures and Japanese GDP will also be the market’s focus.
Monday will be a little quiet, with no tier one economic data. Japan’s revised industrial output numbers for March will be released. In the US session the NHAB housing market index is published.
Tuesday is more important as inflation numbers are issued in the UK and Eurozone. In April UK CPI held at a record low 0%. Growth in the UK slowed to a two-year low in the first quarter of 2015, and the Bank of England lowered its growth forecast for the year to 2.4% (previous forecast was +2.9%). Final Eurozone CPI for April will be released as well after a flash estimate showed zero inflation.
The euro area also sees the publication of trade data on Tuesday. Meanwhile, Germany, which is Europe’s largest economy, will release ZEW economic sentiment numbers. Building permit data are due in the US later in the day.
On Wednesday, the first item on the calendar is consumer sentiment data from Australia followed by first quarter GDP numbers out of Japan. GDP rose 0.4% in the final three months of last year.
The highlight of the day will be the minutes from the latest meetings of the Bank of England and the Federal Open Market Committee (FOMC). In both latest meetings of both central banks, monetary policy was left unchanged.
On Thursday flash manufacturing and services PMI will be released from several Eurozone-member countries as well as for the entire Eurozone. April’s PMI data showed economic growth in the Euro area continued, with all of the four largest member states in expansion. The survey data for May will be eyed to see if the ECB’s policy of quantitative easing is continuing to stimulate the economy. The euro area economy expanded by 0.4%, slightly below expectations as economic growth in Germany slowed dramatically since the previous quarter. Spain continued to grow strongly and France surprised on the upside, while Greece has slid back into recession.
Manufacturing PMI data are also out for China and the United States on Thursday. In the US, initial jobless claims numbers and the National Activity Index are out.
On Friday the Bank of Japan holds a press conference after releasing a monetary policy statement. Detailed first quarter GDP numbers and the Ifo Business Climate Index are out in Germany. Also important to watch will be ECB Chief Mario Draghi’s speech at the ECB Forum on Central Banking titled “Inflation and Unemployment in Europe,” in Portugal. In the UK, public sector borrowing data will be out. Then inflation numbers are out in the US and Canada, with the latter also seeing the publication of retail sales figures.
Inflation numbers are out in the US and Canada, with the latter also seeing the publication of retail sales figures.
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