GDP DATA, CENTRAL BANK SPEAKERS IN THE HEADLINES ON THURSDAY
A combination of economic data and monetary policy considerations will headline the financial markets on Thursday, giving investors the latest insight into the global economy.
Action begins in Europe at 05:45 GMT with Switzerland’s monthly unemployment report. The May jobless rate is forecast to decline to 2.6% from 2.7%.
At 06:00 GMT, the German government will report on April factory orders. The headline reading is expected to show month-on-month growth of 0.8% following a 0.9% decline in March.
Later in the morning, the French government will report on its April trade balance. The deficit in Paris is forecast to widen slightly to €5.3 billion.
At 09:00 GMT, the European Commission’s statistical agency will release revised first-quarter GDP figures. The euro area economy slowed unexpectedly between January and March, preliminary estimates showed last month. The revised data set is expected to confirm the first-quarter slowdown with quarterly growth of just 0.4%. In annualized terms, that translates to 2.5%.
Shifting gears to North America, the US Department of Labor will issue its weekly report on jobless claims for the period ended 2 June. The number of Americans filing for first-time unemployment benefits likely rose by 4,000 to a seasonally adjusted 225,000.
The Bank of Canada (BOC) will issue its biannual Financial System Review at 14:30 GMT, which provides a snapshot of key economic developments facing the economy. About 45-minutes later, BOC Governor Stephen Poloz is scheduled to deliver a speech.
BOC officials are widely expected to raise interest rates in July as inflation continues to gain traction thanks to rising oil prices.
Around the same time as Poloz, Bank of England (BOE) Governor David Ramsden is also expected to speak publicly.
Europe’s common currency has extended its rally to two-week highs amid signs that the ECB will taper bond purchases all the way down to zero before the end of 2018. EUR/USD was last seen trading just below 1.1800, having gained some 250 pips from last week’s swing low. The pair is currently eyeing the 1.1830 resistance level, which corresponds to the high from 22 May.
Cable extended its winning streak on Wednesday, as prices reached their highest levels in over two weeks. GBP/USD was last seen trading around 1.3430, having gained 0.1% from the previous close. The pair is approaching a resistance level around the 1.3440 region; a clean break could generate a relief rally back toward 1.3500.
The USD/CAD exchange rate is coming off a volatile Wednesday session as prices plunged to a low of 1.2868. The pair has since recovered nearly 80 pips to trade back in the mid-1.2900 region. The North American exchange rate continues to be influenced by NAFTA rumors, which aren’t going away anytime soon.