After yesterday’s quiet session due to bank holiday, UK and US markets were closed. Today, as traders are back to their desks, we can expect a return of liquidity to the markets.
With US dollar rising now 0.20 percent along with Japanese Yen, Swedish Krona losing 0.65 on lower growth in Q1 than consensus, today we have still a lot of economic news that could potentially create excellent trading opportunities. Let’s take a look at today’s main events in economic calendar.
1:30pm US: Core PCE Price Index m/m. From the FED’s perspective today’s data are important before highly expected rate hike in June. From the beginning of the year we see a declining prices of goods and services, excluding food and energy. A continuation of a trend, started six moths ago, would cast a shadow on further increase in federal funds rate. Core PCE consensus is at +0.1 percent with -0.1 percent previously.
3:00pm US: CB Consumer Confidence. Previous reading of the Conference Board Consumer Confidence, a survey of about 5000 households, was the first worse than expected reading this year. Another decline in leading indicator of consumer spending along with disappointing Core PCE could weaken rate hike expectations.
10:00 NZD: RBNZ Financial Stability Report. Later in the day, after European and North American bourses closed, we have a Reserve Bank of New Zealand insights into inflation, growth and other economic conditions affecting interest rates in the future.