American FX Outlook: US durable goods orders and Fed speakers headline

Mario Blascak, PhD Independent Analyst

What you need to know before markets open

German Ifo business confidence indicator rose slightly after falling off multi-year highs for five consecutive months.
The UK first quarter GDP revision remained unchanged with growth 0.1% Q/Q and 1.2% y/y.
The Sveriges Riksbank celebrates 350th anniversary with high-fliers including Fed’s chairman Powell, Bank of England Governor Carney and the ECB’s Coeuré talking about the past, present, and future of monetary policy.
The Federal Reserve Bank of Dallas is hosting regional Fed presidents for discussion about technology in business in Dallas, Texas.

Friday's upcoming market moving events

RBA Assistant Governor Michele Bullock is scheduled to speak at De Nederlandsche Bank's Housing Market seminar, in Amsterdam at 12:00 GMT.
The US durable goods orders are seen falling -1.4% m/m while core durable goods orders excluding transportation are set to rise 0.5% m/m in April.
ECB Executive Board member Benoit Coeuré participates in a high-level panel at Sveriges Riksbank’s 350th-anniversary celebration in Stockholm at 13:15 GMT.
Federal Reserve chairman Jerome Powell participates in a panel discussion on "Financial Stability and Central Bank Transparency" at Sveriges Riksbank’s 350th-anniversary celebration in Stockholm at 13:20 GMT.
The Bank of England Governor Mark Carney participates in a panel discussion on "The future of central banking?" at Sveriges Riksbank’s 350th-anniversary celebration in Stockholm at 13:20 GMT.
The US Michigan consumer sentiment index is expected to remain unchanged at 98.38 in May.
Chicago Federal Reserve Bank President Charles Evans is expected to participate in a panel discussion with Dallas Federal Reserve Bank President Robert Kaplan and Atlanta Federal Reserve Bank President Raphael Bostic at the Federal Reserve Bank of Dallas conference entitled "Technology- Enabled Disruption: Implications for Business, Labor Markets and Monetary Policy" in Dallas at 15:45 GMT.

Major market themes

Global equities recovered somewhat on Friday after the US President Trump canceled the summit with North Korean Kim Jong Un triggering the flight to safety in support of Japanese Yen.
US Dollar recovered slightly after the risk aversion eased on Friday.
Sterling initially fell but recovered on the downside after the first quarter GDP failed to surprise on the upside coming out in line with the market expectations.
Watch USD reacting to the US durable goods orders report and read how to trade durables with EUR/USD here.

Earlier in Asia/Europe

Tokyo core CPI rose 0.5% y/y in May, missing the market expectations.
German Ifo business climate indicator rose slightly to 102.2 in May and stopped the five-month lasting trend of decline.
The first revision of the first quarter UK GDP saw growth reaching 0.1% Q/Q and 1.2% y/y, unchanged from preliminary estimates.

Author

Mario Blascak, PhD

Independent Analyst

Dr. Mário Bla&scaron;čák worked in professional finance and banking for 15 years before moving to journalism. While working for Austrian and German banks, he specialized in covering markets and macroeconomics.

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