Quote:
‘It takes balls to introduce an English mozzarella’. Raymond Blanc (1949-)
The News:
Washington-based Peterson Institute for International Economics says most of the 29 currencies studied were undervalued against the US dollar, especially against the Chinese renminbi.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP Q1 Capital Spending –25.3%, Ex-Software –25.4%, versus –17.3% and –18.1% Q4.
10:00 EZ16 April Retail Sales (-0.4% to +0.5% M/M, -3.6% to –2.2% Y/Y, versus –0.6% and –4.2% March).
12:00 GB Bank of England’s interest rate decision (unanimously expected unchanged at 0.50%).
12:45 EZ16 ECB interest rate decision (expected unchanged at 1.00% although SEB Banken favours –25 bp to 0.75%).
12:50 US Fed’s Pianalto speaks, Louisville.
13:25 Fed’s Dudley on Public-Private Investment, New York.
13:30 EZ16 ECB’s Trichet speaks at regular News Conference.
13:45 Fed’s Bernanke speaks, Washington.
13:30 US Weekly Jobless Claims (600K to 665K, Continuing Claims 6780K to 6900K, vs 623K and 6788K prior week).
13:30 US final Q1 Unit Labour Costs (+2.0% to +3.9%, Non-Farm Product/y +0.3% to +2.0%, vs +3.3% and +0.8%).
13:30 CA April Building Permits (-20.0% to –5.0% M/M versus +23.5% March).
14:00 CA Bank of Canada interest rate decision (unanimously expected unchanged at 0.25%).
15:00 CA May Ivey Purchasing Managers (48.6 to 60.0 versus 53.7 April).
The Psychology:
EU parliamentary elections start (Britain and Netherlands); continue through to Sunday.
The Risk:
Scandinavian and Eastern European currencies under pressure with high volatility.
Today’s most interesting chart: Amsterdam Equity Index
Retreating from apex of ‘wedge’.
