There are no notable economic releases in the European session, so we will need to wait for the US session to get something to work with. The main event today will be the US Consumer Confidence report but we will also see the Canadian PPI data and hear from some Fed speakers.
12:30 GMT/08:30 ET Canada April PPI
The Canadian PPI M/M is expected at 0.6% vs. 0.8% prior. The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It is an important economic indicator used to gauge inflation at the wholesale level. The PPI covers a wide range of industries, including manufacturing, mining, agriculture, and utilities.
Even if it's been rising lately, the PPI is still in negative territory on a year-over-year basis. We will need much higher readings before it starts to become a worrying sign for consumer inflation.
14:00 GMT/10:00 ET US May Consumer Confidence
The US Consumer Confidence is expected to tick lower in May to 95.9 vs. 97.0 in April. The last report missed expectations by a big margin reaching the lowest level since July 2022. The Chief Economists at The Conference Board highlighted that “Confidence retreated further in April as consumers became less positive about the current labour market situation, and more concerned about future business conditions, job availability, and income”.
She further added that “despite April’s dip in the overall index, since mid-2022, optimism about the present situation continues to more than offset concerns about the future." The Present Situation Index will be something to watch as that’s generally a leading indicator for the unemployment rate.
Central Bank speakers:
- 13:55 GMT/09:55 ET - Fed's Kashkari (hawk - non voter).
- 17:05 GMT/13:00 ET - Fed's Cook (dove - voter).
- 17:05 GMT/13:00 ET - Fed's Daly (neutral - voter).