This week, the central bank torch is passed to the RBA. Lately, the meetings of this Bank have been non-events and we believe that this one will not be an exception. In the UK, following the release of the May manufacturing PMI last Friday, we get the construction and services indices for the month, on Monday and Tuesday respectively. On Friday, we get Canada’s employment report for May.
On Monday, during the European morning, the UK construction PMI for May is coming out. Expectations are for the index to have declined to 52.0 from 52.5. Following the weak economic growth in Q1, investors are probably paying extra attention to the PMIs for clues on how the economy performed thereafter. On Friday, the manufacturing PMI rose to 54.4 from April’s 17-month low of 53.9. However, the manufacturing sector accounts for only about...
On Tuesday, during the Asian morning, the RBA will decide on monetary policy. Expectations are for the Bank to keep interest rates unchanged once again. Lately, the meetings of this Bank have been...
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