At 08:00 GMT, Eurozone Markit Manufacturing PMI (May) is expected to come in at 56.0 from 56.2 previously. Markit Services PMI (May) is expected at 54.6 v 54.7 previously. Markit PMI Composite (May) is expected to be 55.1 from 55.1 prior. This data is also expected to soften once again from the highs in December. EUR crosses can see a spike in volatility should actual released data differ from the expected consensus.
At 08:30 GMT, UK Consumer Price Index (YoY) (Apr) is expected out at 2.5% v 2.5% previously. Core Consumer Price Index (YoY) (Apr) is expected at 2.2% from 2.3% prior. These data points are expected to show CPI holding steady. The yearly figure is above the Bank of England’s 2% target since March of 2017 due to the change in the value of the pound after Brexit. However the BOE says that inflation is likely to move back to 2% in 2018. Producer Price Index – Input (YoY) (Apr) is expected at 5.8% from 4.2% previously. Producer Prices are expected to increase again after the drop in February.
At 14:00 GMT, US New Home Sales (MoM) (Apr) is expected to come in at 0.679M from 0.694M previously. The data is expected to continue to strengthen after it beat the consensus of 0.630M last month. Further improvement in these figures shows a pickup in confidence in the US housing market. USD crosses may be volatile due this data and could lead to further USD strength.
At 18:00 GMT, US FOMC Meeting Minutes will be released. Traders will pay close attention to this release in order to discover how the FOMC views the current macro economic situation and if they are going to remain on their path of gradual rate increases.