It's a busy day ahead on the economic calendar, with private sector PMIs for May in focus. For the Pound, retail sales figures will also influence.
It was a relatively busy start to the day on the economic calendar this morning. The Japanese Yen and Aussie Dollar were in action this morning.
Inflation and prelim private sector PMIs were in focus in the early hours.
In April, deflationary pressures persisted, with consumer prices falling by 0.1% when compared with April 2020. Economists had forecast a 0.2% decline.
The Japanese Yen moved from ¥108.816 to ¥108.841 upon release of the figures that preceded the prelim PMI numbers.
According to prelim figures, Japan’s manufacturing PMI slipped from 53.6 to 52.5 in May, with the services PMI falling from 49.5 to 45.7. Economists had forecast PMIs of 53.3 and 48.0 respectively.
According to the May prelim Markit Survey,
The Japanese Yen moved from ¥108.839 to ¥108.840 upon release of the figures. At the time of writing, the Japanese Yen was down by 0.03% to ¥108.81 against the U.S Dollar.
Prelim retail sales figures were in focus this morning.
In April, retail sales rose by 1.1% according to prelim figures. Sales had risen by 1.3% in March.
According to the ABS,
The Aussie Dollar moved from $0.77654 to $0.77620 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.14% to $0.77606.
At the time of writing, the Kiwi Dollar was down by 0.21% to $0.7185.
It’s a busy day ahead on the economic data front. Prelim French, German, and Eurozone private sector PMI figures for May are due out later today.
Following impressive manufacturing PMI figures of late, the markets will be looking for the momentum to continue.
Key, however, will also be a continued recovery across the services sector.
While the headline figures will be the main area of focus, expect the sub-components to also influence. New orders, employment, and optimism will be other areas of interest. Near-term, the markets are expecting price pressures to linger.
On the monetary policy front, ECB President Lagarde is also scheduled to speak. Expect any chatter on the economic outlook or monetary policy to also provide the EUR with direction.
At the time of writing, the EUR was up by 0.05% to $1.2234.
It’s a particularly busy day ahead on the economic calendar. Retail sales figures for April and prelim private sector PMI numbers for May are due out.
Expect the retail sales and services PMI figures to have the greatest impact on the Pound.
At the time of writing, the Pound was down by 0.06% to $1.4181.
It’s a relatively busy day ahead on the economic calendar. Prelim private sector PMI numbers for May and existing home sales figures for April are due out.
Expect the prelim services PMI to have the greatest impact on market risk sentiment and the Dollar.
At the time of writing, the Dollar Spot Index was down by 0.07% to 89.742.
It’s a relatively busy day ahead on the economic calendar. Retail sales figures for March are due out that will provide the Loonie with direction.
Impressive numbers will bring sub-C$1.20 levels into view.
At the time of writing, the Loonie was down by 0.09% to C$1.2072 against the U.S Dollar.
For a look at all of today’s economic events, check out our economic calendar.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.