A key domestic economic release today is the CBI Distributive Trades Survey, which will provide an early estimate of retail spending for May and cues about the economy’s performance in the second quarter. Going forward, investors will look ahead to the second estimate of UK’s first quarter GDP reading, later this week.Meanwhile, it is going to be a busy calendar day in the US with reports on durable goods orders for April, new home sales, Conference Board’s consumer confidence index and the Markit services PMI for May, scheduled later today. In the Euro zone, developments from negotiations between Greece and its creditors are likely to dominate investor sentiment.
According to just released public finances figures, Britain’s government borrowings fell unexpectedly for April. Moving ahead, market participants will note BoE Governor Mark Carney’s comments in his speech, due later today. Traders also await next week’s second estimate of the UK’s first quarter GDP figures for an encompassing view surrounding the performance of the UK economy during the previous quarter.In the Euro zone, the German Ifo business climate and sentiment index deteriorated less than anticipated from April, easing concerns about the Euro zone’s largest economy. Across the Atlantic, investors look forward to the release of consumer price index data for more hints to the US Fed's next move.
This morning’s data showed that monthly retail sales bounced back in April, suggesting an uptick in consumer demand leading the Pound to breach the 1.56 mark against the US Dollar. Yesterday’s minutes of the latest BoE policy meeting also suggested a positive mood among policymakers as they expect British economic growth to improve in the second quarter.In the Euro zone, the preliminary manufacturing PMI data surpassed market estimates in May, thereby providing some support to the Euro against the greenback. Across the Atlantic, market focus will be on weekly jobless claims, existing home sales and manufacturing activity data for further direction to risk appetite.