Summary:
- Chinese retail sales data expect to show a pick-up in May
- Swedish CPI inflation to be released in the morning
- A streak of key US data scheduled for the afternoon
8:00 am BST - China, Industrial production and retail sales for May. A pack of important Chinese data will be released in the morning and will help investors judge whether the world's second biggest economy keeps slowing. Industrial production is expected to remain more or less intact at 5.5% YoY (5.4% YoY in April). Retails sales are forecasted to jump from 7.2% YoY in April to 8.1% YoY in May while urban investment should remain unchanged at 6.1% YoY.
8:30 am BST - Sweden, CPI inflation for May. The Swedish CPI inflation slowed in the first half of 2019 and is expected to decelerate from 2.1% YoY in April to 2% YoY in May. However, Riksbank already signalled that it is highly unlikely that it will raise or cut rates during the current year therefore today’s print should not have much of an impact on monetary policy.
Data from the United States
Apart from the Chinese data pack, investors will be also offered a bundle of key prints from the United States. Retail sales report for May will be released at 1:30 pm BST and is expected to show a pick-up from -0.2% MoM to 0.6% MoM when it comes to headline measure. Core gauges are also expected to move higher. 45 minutes later (2:15 pm BST) industrial production figures for May will be published. Industrial output should rebound from -0.5% MoM to 0.1% MoM. Last but not the least, UoM Consumer Sentiment index for June will be released at 3:00 pm BST. The preliminary reading is expected to show a decline from 100 pts to 98 pts. Note that labour market reports released last weak disappointed and increased chance of Fed cutting rates in July. More downbeat data could further boost already-high market odds for a cut.
Central bankers’ speeches:
- 1:00 pm BST - Bank of Russia Governor Nabiullina
- 1:55 pm BST - BOE Governor Carney
EURUSD continues a pullback following a failed attempt to break above the resistance zone ranging above the 1.13 handle and the 200-session moving average. However, a retest of the aforementioned hurdles cannot be ruled out, especially in case today’s US data follows into footsteps of labour market reports and disappoints. Source: xStation5
