A European holiday on Monday (excluding UK) and light and medium importance economic data leads to a likely slow start to the week.
The increasing interventionist statements from Chinese authorities have taken the momentum out of Bitcoin and copper with price caps mooted although how the Chinese would cap worldwide markets is undisclosed but it does indicate where recent demand is from; as we have seen sharp drops in both assets.
The US Dollar was having a poor week against the majors until the US PMI’s were issued on Friday and showed strong expansion in both manufacturing and services, they also showed price pressures which in turn implies inflation.
The US $ is going to need continuing encouragement from economic figures as the underlying trend remains bearish.
Commodities had a poor end to the week as mentioned above and it will be interesting to see whether investors remain committed to higher prices or lose patience.
PCE at the end of the week is the FED’s preferred measure of inflation and may reignite tapering fears.
Date | Country | Figures | Expected | Previous |
May 25 | UK | Public Sector Net Borrowing | -£32B | -£28B |
| USA | Consumer Confidence (May) | 119 | 121.7 |
May 27 | USA | Durable Goods (MoM) | 0.7% | 0.5% |
| USA | Initial Jobless Claims | 430K | 444K |
| USA | GDP Growth rate QoQ | 6.5% | 4.3% |
May 28 | EUR | Consumer Confidence (May) | -6 | -8.1 |
| USA | Goods Trade Balance |
| -$90.6B |
| USA | Core PCE YoY | 3% | 1.8% |
| USA | PCE (YoY) |
| 2.3% |
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