- A set of final PMI readings is expected to be released over the day
- US manufacturing ISM for May and construction spending for April on the agenda
- Three Fed central bankers to take the floor later in the day
Final PMIs from Spain/Italy/France/Germany/EMU/UK/Canada - 8:15 am BST/8:45/8:50/8:55/9:00/9:30/2:30 pm BST: Preliminary PMIs from Europe for May brought another disappointment as no material improvement was seen. Moreover, the services PMI for at a European level produced a surprising decline last month, hence if not revised, it should reveal sources of such a deterioration today. Keep in mind that prints from EMU, France and Germany will be final ones, while indices for other countries will be first and final (no preliminary data is available).
8:30 am BST - Swedish retail sales for April: The consensus points to a 0.6% MoM increase.
3:00 pm BST - US manufacturing ISM for May/construction spending for April: In April we saw a significant decline in the manufacturing ISM index which fell to the lowest since November 2016. Expectations ahead of today’s reading point to a slight improvement to 53 from 52.8. On top of that, subindices for employment and prices could be particularly scrutinized by market participants. The former should shed more light on the upcoming labour market report (to be released this Friday), while the latter could reflect the latest trade war escalation between the US and China (bear in mind that consumers could be burdened more this time around). 15 minutes earlier the final PMI for manufacturing will be released. It is worth noting that along with the ISM report for manufacturing a reading concerning construction spending for April will also be published. The consensus points to a 0.4% MoM increase.
Central bankers’ speeches:
2:10 pm BST - Fed’s Quarles
5:40 pm BST - Fed’s Barkin
6:25 pm BST - Fed’s Bullard
Traders on the EURNZD currency pair are trying to pull the price down after it failed to break above the important supply zone. Source: xStation5