- UK labour market report to be released in the morning
- Will API report provide more fuel for oil bulls?
- Bank of England speakers on the agenda
9:30 am BST - UK, Labour market report for April. The UK industrial and manufacturing production data released yesterday disappointed and exerted some pressure on GBP. Moreover, the GDP reading showed deeper contraction than expected. The British pound may get a chance to recover some losses with the release of April’s labour market report today. However, one should be wary that in case this report disappoints as well, the British currency may be doomed for more losses.
1:30 pm BST - US, PPI inflation for May. The PPI inflation reading seldom moves the markets but it provides an update on producers’ costs. A steep rise in PPI has a scope to push CPI higher as producer will pass part of cost increases onto customers. A slowdown from 2.2% YoY to 2% YoY is expected for the headline gauge while the core measure should slow from 2.4% YoY to 2.3% YoY.
9:40 pm BST - API report on oil stockpiles. Recent trade war escalation pushed crude prices significantly lower as the demand outlook has become more uncertain. On the other hand, pledge of Saudi Arabia to roll on the output cut agreement buoyed oil in the past few days. API report will provide quick update ahead of the DOE report.
Central bankers’ speeches:
- 10:00 am BST - BoE’s Saunders and Broadbent
- 11:30 am BST - ECB’s Kazimir
GBPUSD struggles to distance away from the price zone ranging 1.2660-1.2700. Today’s labour market report may be a chance to recover but one should keep in mind that the Conservative Party leadership contest is on and politics are likely to have an impact on the pound as well. Source: xStation5