With the UK, US & Chinese markets closed for holidays today, it doesn’t mean the rest of the week will remain quiet. Here’s the week ahead…
In the UK, reports on activity in the manufacturing and construction sectors with be a big focus for traders who are looking for further indications on the continued effect that the Brexit decision will have on the economy. The May report for the manufacturing sector activity will be released on Thursday at 9:30am BST, followed by the report on the construction sector on Friday at the same time.
The manufacturing PMI is forecast to dip to 56.5 from 57.3 in April, while construction activity is expected to weaken slightly to 52.7 from 53.1. Last weeks reports show the British economy grew by just 0.2% in the January-March quarter, underlining worries that the economy is slowing just as Prime Minister May starts negotiations to leave the EU.
The dollar was steady in early Asian trading on Monday, holding well above last week’s 6 1/2-month lows and taking news of Pyongyang’s latest missile test in stride. The dollar index was flat at 97.432, some distance from last week’s low of 96.797, its weakest since Nov. 9.
This week’s US Employment report, due on Friday will be the focus on many traders this week, looking for any signs that the Federal Reserve are going to raise rates as expected through the end of the year.
Asian stocks edged up on Monday morning, taking cues from Wall Street shares hovering around record highs, Japan’s Nikkei edged up 0.2 percent while Australian shares dipped 0.4 percent. China’s markets are closed on Monday and Tuesday for a holiday.
The euro was steady on Sunday night at $1.1173, after notching a 6 1/2-month high of $1.1268 last week. The euro reached its highest in more than three years last week, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday.
With political risks in France having settled and stronger eurozone economy data has led to heightened speculation that the European Central Bank may scale back its massive monetary stimulus.
ECB President Draghi is scheduled to speak at the European parliament at 2pm BST today. Last week, Draghi said there was “no reason to deviate from the indications” that the central bank has already laid down.