The US New Home Sales will be the first big event, and with impressive Housing Data, the housing sector is providing some hope for the US economy hence easing pressure on quantitative easing prospects. US New Home sales impressed in April, increasing more than expected to 343k; this time around, the market expects this trend to continue with an increase to 347k for May.
Another report from the US is expected to be of most interest on Tuesday; the US CB Consumer Confidence report is expected to be released at 1400hrs GMT. This index declined in May from 68.7 in April to 64.9 against market expectation of 70.0. Current economic conditions and short-term forecast for the US economy has led market analysts to consider further decline to 64.0 this time.
Still more US data will take centre-stage on this day, with US Core Durable Goods Orders scheduled to be released at 1230hrs GMT. In April, durable goods ex. transportation items plunged unexpectedly by 0.6 percent against a market expectation of 1.1 percent increase. This was a second successive decline after another 0.8 percent decline in March. The market is expecting a change with 1.0 percent increase for May. The US Pending Home Sales is expected to be released at 1400hrs where an increase of 1.3 percent is expected.
The market focus will shift to the UK where UK Current Account data will be released at 0830hrs GMT. There was an increase in the fourth quarter as trade deficit reduced and income surplus increased. The report is expected to show a widening deficit of 8.9 billion Great Britain pounds from 8.5 billion Great Britain pounds previously registered. Another big event will be the Euro-area Economic Summit which is expected to discuss the future of the Euro. US Unemployment Claims will be read at 1230hrs GMT where the market expects a drop to 385k.
Major event this day will be the Canadian GDP report which will be released at 1229hrs GMT. The report is expected to show an expansion of 0.2 percent.