Summary:
- UK retail sales for April expected to show 4.5% YoY advance
- Durable goods orders data gains importance amid weak PMIs
- Riksbank Deputy Governor Skinglsey to speak on the economic situation
9:30 am BST - UK, Retail sales for April. The UK data has been mixed as of late with inflation disappointing and production figures coming in higher than expected. Nevertheless, GBP responds mostly to the political developments now and given that it is rumoured that Theresa May may announce resignation today, data is unlikely to be given top priority. However, a short-term price swings may still be on the cards therefore it may be wise to follow the newsflow to see whether actual figures deviate much from 4.5% YoY expected for the headline and 4.2% YoY forecasted for core measure.
1:30 pm BST - US, Durable goods orders for April. The US data released yesterday thrilled markets as disappointing PMIs hinted that the US may be catching up with the rest of the world on the slowdown path. Preliminary durable goods data for April will be a key as it may hint at prospects for the manufacturing sector in the months to come. Market consensus expects a 2% MoM decline in headline measure and 0.3% MoM decline in the core one.
Central bankers’ speeches:
- 9:30 am BST - ECB’s Nowotny
- 11:00 am BST - Riksbank’s Skingsley
GBPUSD dipped more than 4% over the past 3 weeks, an enormous move for the major currency pair in such a short time. More suffering may be looming ahead in case reports are confirmed and Theresa May resigns today. Source: xStation5
