Morning Market Update – A Positive Trend for CAD

So Far

South Korea’s data releases caused more harm with the release of the Industrial Output Growth coming in at -2.2% and going below expectations (0.8%) in April.
The Industrial Output (YoY) registered at 1.7% and went below the forecasted values (5%) in April and South Korea’s Service Sector Output dropped down from a previous 0.4% to 0.1% in April.

The RBNZ released its Financial Stability Report today. The report mainly stated that New Zealand’s financial system is effective and the risks associated with the finances have decreased in the recent months.

The pound continued to grow with the United Kingdom Consumer Confidence rising above the forecasted values (-8) in May: Actual (-5) and the United Kingdom BRC Shop Price Index (YoY) rising from a previous -0.5% to -0.4% in May.

A mixed reaction was seen for the Yen with the release of the Japanese Industrial Production (MoM) going below forecasts (4.3%) in April: Actual (4%) and the Japanese Industrial Production (YoY) rising from a previous 3.5% to 5.7% in April.

China’s data releases got stronger for the day with the Non-Manufacturing PMI at 54.5 in May from a previous 54 and NBS Manufacturing PMI going above the forecasted values (51) in May: Actual (51.2).

Coming up

The next major data release comes from the UBS Switzerland Consumption Indicator. The indicator has been growing at a steady pace and we expect it to rise further from a previous 1.5. Late in the day, we have the ZEW Financial Market Survey which took a slight dip and any rise should boost the economic sentiment for Germany.

France may see some decline with the Consumer Price Index looking weaker when compared to the previous value of 1.4%.  Any decline from the expected values can damage them further more with the unemployment rate having a thin decline when compared to the previous value of 11.7% and has been forecasted at 11.6%.

Unemployment Rate in Germany may see a slight dip with 5.7% when compared to the previous data release at 5.8%. However the Unemployment Change is in line with the previous level at -15K.

The pound seems to be in trouble for the day with the Consumer Credit showing a decline at 1.5B versus 1.624B. In addition, the mortgage approvals seem to be at 66.05K when compared to the previous value of 66.83K.

Euro’s Unemployment Rate and Consumer Price Index shows negative signs and may see some loss for the day. Chicago Purchasing Managers Index and Pending Home Sales show negative results as they are below the expected values. This can bring about the greenback’s downfall.

The Canadian dollar looks good with better results from the Gross Domestic Product and this can assist them in the day with the major currencies seeing some downfall.

 
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