This week we will be looking at a number of important economic data that will have an impact on market movements as well as central banks' decisions. The markets will also be looking at the development of China-US trade negotiations as well as the forthcoming summit between the US president and the North Korean leader.
Highlights of the week's economic data as follows:
Canadian Interest Rate Decision
The Bank of Canada is due to announce its interest rate decision and it is widely expected that interest rates will remain unchanged at 1.25% amid uncertainty about trade policies. The bank has raised rates only three times since July 2017. Monetary policymakers will be eyeing developments in NAFTA negotiations and their impact on Canadian markets.
European inflation figures
Initial inflation figures are expected to be released in the euro area and the consumer price index is expected to rise by 1.6% in May from 1.2% in April. The European Central Bank has recently begun preparing for a move to end the monetary stimulus program, but some doubts have come to the fore after recent economic slowdown.
US Jobs Report and PCE Numbers
Friday's US non-farm labor market data is expected to add 185,000 jobs in May after adding 164K in the previous month. The average wage is expected to rise by 2.7% YoY in May and Unemployment rates to stabilize at 3.9% the lowest level in 18 years.
Also, this week will be released personal consumption expenditure figures used by the US Federal Reserve to determine whether to raise or lower interest rates, and is expected to rise by 2% on yearly basis in April.
Growth data for the first quarter of 2018 are also due to be released, as the second GDP estimate is expected to rise by 2.4%.
