Weekly Outlook: May 22 – 26; FOMC Minutes, BoC Meeting & Markit PMIs

We just entered a week with a respectful number of significant economic indicators, Bank of Canada’s interest rate decision, FOMC minutes and Eurozone’s financial stability report. Moreover, the Markit PMIs for various countries will attract traders’ attention.
Monday is quiet as usual with Canada on a bank holiday. German Buba monthly report will be released in the morning, and later on, Chicago Fed national activity for April is expected. Overnight, Nikkei manufacturing PMI from Japan for May is coming out, followed by all also Japanese all industry activity index for March.
On Tuesday, the economic calendar is flooded with data that will probably have some impact on the related currencies. Early in the European morning, German GDP for the first quarter is coming out, while later, attention will be on the Markit preliminary PMIs from Euro area, Germany and U.S., as well as on the German IFO survey for May. In Germany, the manufacturing sector is forecasted to grow marginally lower at 58.0 from 58.2 in April, while services PMI to show a small improvement to 55.5 from 55.4 before. Euro area’s manufacturing PMI is estimated to remain stable at 56.7 while services to edge higher at 56.5 in May versus 56.4 before. After these releases, German IFO current assessment is expected to come out at 121.2 from 121.1 before and expectations at 105.8 in May from 105.2 the previous month. The business climate is also predicted to show a small increase to 113.2 in May versus 112.9 in April.
At 9:00 GMT, Eurozone’s financial stability review will be published while at 10:00 GMT, U.K. inflation report hearings is scheduled for release. From U.K., the public sector net borrowing for April will be revealed as well.
Going to the second half of the trading day, U.S. indicators will hog the limelight. The first estimate of manufacturing PMI is expected to show an expansion of 53.0 from 52.8 before, while the services sector to slow down to 53.0 from 53.1. New home sales for April is also scheduled to come out. Overnight, the speech from Bank of Japan Governor Haruhiko Kuroda will probably have an impact on the Japanese yen.
Read the full article on JFD Research.

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