The week ahead encloses a plethora of significant economic indicators, however, if they do not have significant changes, we wouldn’t expect them to trigger large volatility. RBA will publish its last policy meeting minutes. U.K. and Eurozone will release their CPIs while U.K. and Australia will publish their employment reports. The first quarter preliminary GDP for the Euro area is also coming out.
Monday starts quietly as usual with just a few economic indicators from U.S. & Germany. The German Buba monthly report is coming out in the first half of the day, while later traders’ attention will turn to U.S. where NY empire state manufacturing index is coming out, as well as the NAHB housing market index for May. Overnight, Reserve Bank of Australia will release the minutes from their last policy meeting.
Tomorrow, there is a slew of economic indicators scheduled for publication, from U.S., U.K., Euro area and Germany. Firstly, we begin with the focus in sterling that will probably be affected by U.K. final CPI for April, especially if it surpasses the market consensus. The expectations suggest the consumer prices to grew by 2.6% versus 2.3% in March, year-over-year. The producer price index and the retail price index for April will be released as well. A half-hour later, Eurozone’s preliminary GDP for the first quarter will probably remain unchanged at 1.7% year-over-year. Traders will also monitor German ZEW Survey to confirm the pick-up showed by PMIs. For Germany ZEW current situation and economic sentiment will be released while for Euro area, as a whole, only the economic sentiment is coming out.
Last but not least, investors will eye the U.S. economic indicators for the housing market. The housing starts are expected to have accelerated to 1.265M in April from 1.215M before as well as the building permits to 1.27M from 1.26M in March. On the other hand, industrial production for April is predicted to have a slower expansion of 0.3% in April versus 0.5% the last month.
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