Economic calendar: What will BoC do?

Summary:

  • Bank of Canada is expected to hold rates unchanged
  • Regional manufacturing Fed index from Richmond
  • Some central bankers on the agenda

8:30 am BST - Swedish GDP for Q1: The Swedish krona has come under downward pressure in recent weeks on the back of a delay regarding the process of monetary policy normalization. A quicker pace of GDP growth could act in favour of the SEK as it would increase the likelihood of higher rates. The consensus signals that the economy has expanded 0.2% QoQ during the first three months.

8:55 am BST - German labour market data: The German labour market looks pretty well as it is the case elsewhere too. The consensus for today suggests that the unemployment rate has remained unchanged at 4.9% while a number of unemployed people has lowered 8k compared to a 16k fall in April.

3:00 pm BST - Bank of Canada rate decision: Although the Bank of Canada is expected to stay on hold with interest rates at today’s meeting, investors’ attention could be paid to the forward guidance. Writing about the CAD one needs to remember about the first quarter GDP data due to be released this Friday (we’ll see if the Canadian economy also saw a decent headline pace of growth as the US economy did).

3:00 pm BST - Regional Fed index from Richmond: The regional data from Dallas released yesterday disappointed which may have something to do with the latest escalation of the trade war. Meanwhile, the consensus for today points to a possible increase to 7 from 3.

Central bankers’ speeches:

  • 8:30 am BST - ECB’s Mersch

  • 9:00 am BST - ECB’s Rehn

The USDCAD is approaching its crucial resistance at 1.3520 ahead of the BoC rate decision. Source: xStation5

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