American FX Outlook: Canada’s employment data headline

What you need to know before markets open

• China’s trade balance reached a slightly lower surplus than expected with imports rising massively.
• G7 meeting starts in Canada with the US-led trade wars being the hottest topic.
• German industrial production disappointed in April falling -1.0% over the month.
• The Canadian employment report headline the US session.

Friday's upcoming market moving events

• G7 meeting starts in La Malbaie in Canada with the latest round of trade tariffs threat from the US being the hottest topic.
• Canada’s employment is expected to rise 17.5 K in May with the unemployment rate unchanged at 5.8%. For further details read Yohay’s Preview here.

Major market themes

• EUR is trading down 0.25% at 1.1765 as repositioning ahead of the weekend G7 summit is taking place.
• Sterling trades 0.1% hovering near 1.3400 level.
• Watch CAD factoring in the Canadian employment report.

Earlier in Asia/Europe

• China’s trade balance reached a surplus of $24.92 billion with exports rising 12.6% y/y while imports rose 26% y/y.
• German industrial production unexpectedly fell  -1.0% m/m while decelerating to 2.0% y/y in April.
• German trade balance reached a surplus of €20.4 billion in April.
• The Bank of England inflation expectation survey saw median inflation expected in the one-year horizon at 2.9% in May, unchanged from April. 
• ECB executive board member Yves Mersch was participating at International Risk Management Conference in Paris but refrained to talk about the monetary policy issues as the meeting falls to the quiet period before next week’s ECB meeting. For details read my ECB Preview here.