This week should be quite an eventful one: with the Reserve Bank of Australia and the Reserve Bank of New Zealand deciding on interest rates, as well as the ongoing Brexit saga and the US-China trade talks. In addition to that, the Eurozone will provide their services PMI and Canada will deliver its employment data.
Monday will be a relatively quiet day in terms of economic data releases. The Eurozone will present its final services PMI figures for the month of April. Individual states, like Italy, Spain, France and Germany are also set to show how their service sectors had performed over the last month. That said, as it is usually the case, the final prints are expected to confirm their preliminary estimates. For example, Eurozone’s print is expected to confirm that the index slid to 52.5 in April from 53.3 in March.
Later in the day, Bank of Canada Governor Stephen Poloz is expected to deliver a speech before the Canadian Credit Union Association on the topic of “The Future of Canada’s Mortgage Market”. We believe that this won’t be a market moving event, hence why we will not put too much emphasis on it.
On the political arena, Brexit negotiations are back this week, as Theresa May will try to find common grounds with MPs again over her EU deal. After the local elections that took place in UK last week, both Conservatives and Labour were disappointed with the results, as they have lost some votes to other, less popular parties. This showed that people are frustrated with both, Conservatives and Labour, over the way they are dealing with Brexit. This might actually work in favor for Theresa May, as Jeremy Corbyn’s popularity is...
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