This morning, the Pound was up 0.4% at $1.3589 against the Dollar which weakened as investors focused on economic data that could assist in the recovery of the Pound after the Bank of England held interest rates at 0.5%.
ING FX strategist, Viraj Patel, stated: “An overall solid UK jobs report would go a long way to rekindling some of the lost BoE policy tightening sentiment in recent weeks”.
This week’s economic calendar begins light with the focus of today lying on the Fed’s Mester and ECB’s Villeroy speech this morning, followed by the ECB’s Lautenschlaeger, Praet and Coeure speeches.
Tomorrow is looking heavy, what with the China April retail sales, industrial production and fixed asset investment data.
The preliminary Q1 GDP report in Germany and Q1 GDP report for the Eurozone are also due to be released. In France, the final CPI amendments are due for release as well as the March industrial production data for the Eurozone.
The focus for US will be on: April retail sales report, May empire manufacturing, March business inventories and the May NAHB housing market index.
UK March and April employment data is due to be announced followed by the inflation report hearings.
On Wednesday, the Japan preliminary Q1 GDP report is due to be released along with March industrial production and in China the April new home prices.
The final April CPI reports for the Euro area and Germany will be the focus in Europe.
April housing starts and building permits, will be the main focus in the US, alongside the April industrial production. Speeches from the Fed’s Bostic and Bullard are expected.
Thursday is slightly less busy with the main focus on the speeches by members of the Fed and the ECB’s Constancio speech.
The economic data to take note of in the US consists of the April leading index, May Philly Fed PMI and weekly initial jobless claims.
The week comes to a quiet end with the release of Japan’s April CPI report, Europe April PPI released in Germany and March trade balance for the Eurozone followed by speeches from two Fed members.