Finalized manufacturing PMI figures for France, Germany and the Eurozone will attract investor interest on Thursday. Revisions to the preliminary figures for April could shake things up.
Beyond the numbers, investors should monitor the ECB’s discussions. Views on inflation, the economic outlook and the timing of interest rate cuts should be taken into account.
The pound
On Wednesday, UK manufacturing PMI figures will put the pound in focus.
Even though the manufacturing sector represents less than 30% of the UK economy, PMIs could reflect the demand environment. Downward revisions to the April preliminary survey could put pressure on the British pound.
UK house price trends could also shake things up. A continued decline in house prices could impact consumer confidence and spending. Downward trends in consumer spending could dampen demand-driven inflation.
On Friday, the all-important services PMI will be the center of attention. An upward revision to the preliminary services PMI could test investors’ bets on a Bank of England rate cut. The UK services sector accounts for more than 70% of the UK economy and contributes to inflation.
Beyond the figures, the speeches of the Bank of England must also be monitored.
The loon
On Monday, March GDP figures will focus on the loonie. A stronger-than-expected Canadian economy could impact investor expectations for a short-term rate cut from the Bank of Canada.
Canadian trade data for March will also attract investors’ attention on Thursday. Improving trade terms would boost buyer demand for the Canadian dollar.
While the Canadian economy is under scrutiny, investors should also monitor the Bank of Canada’s discussions. Bank of Canada Governor Macklem and Senior Deputy Governor Rogers are scheduled to speak Thursday.
The Australian dollar
Australian retail sales figures will impact buyer demand for the Australian dollar. A recovery in retail sales could fuel demand-driven inflation and force the RBA to adopt a more hawkish monetary policy.
Trade data will also attract investor interest on Thursday. Improving trade terms would support the Australian economy and the Australian dollar.
Other statistics include data on the housing sector. However, this data will likely play a secondary role to retail sales and trade data.
The kiwi dollar
The RBNZ Financial Stability Report on Wednesday will impact buyer demand for the Kiwi dollar. RBNZ Governor Orr will also be the center of attention on Wednesday. Views on inflation, the economy and the path of interest rates must be considered.
The Japanese yen
Industrial production, labor market and retail sales figures for March could influence buyers’ appetite for the Japanese yen on Tuesday. As the dust settles after the BoJ’s April 26 monetary policy decision, an improvement in demand could signal an improvement in the demand environment. A lower unemployment rate could encourage an increase in wages, household spending and changes in consumer prices.
Japanese consumer confidence figures on Wednesday could signal household spending plans in the near term.
The minutes of the Bank of Japan’s monetary policy meeting will focus on…
