Eurozone CPI data for April the highlight before US non-farm payrolls later
Happy Friday, everyone! Hope you're all doing well as we look to get things going here on the session. Markets are bracing themselves for the non-farm payrolls release and as such, we're in a bit of a lull following the moves seen in overnight trading.
Regardless of how diminished the impact may be from the jobs report later, it's still an event that traders pay great attention to for one reason or another so that will dictate how the rest of the trading day will unfold. In the mean time, we'll have a couple of economic releases in the European morning to pass the time.
0545 GMT - Switzerland May SECO consumer confidence
Prior release can be found here. The reading measures the level of consumer confidence in economic activity. A level above zero indicates optimism; below indicates pessimism. Not a major release by any means.
0630 GMT - Switzerland April CPI figures
Prior report can be found here. An indication of inflationary pressures in the Swiss economy, which hasn't really been improving all too much - similar to other economies globally.
0830 GMT - UK April services PMI
Prior release can be found here. The March print was a bit of drag but is expected to improve as we begin Q2. Services account for the bigger portion of the UK economy, so the reading here has near-term significance as it is an indication of the health of domestic conditions and a gauge of how severe the impact of Brexit uncertainty is on the economy. The pound may react slightly on the headlines here but I would continue to opt to fade any spikes like we saw in the aftermath of the BOE yesterday.
0900 GMT - Eurozone April preliminary CPI figures
Prior report can be found here. The main highlight of the session but given the fact that we were already preempted by releases from individual euro area countries earlier this week, we know that the bias here is for improved inflationary figures compared to March. The core reading will be the focal point once again and is expected to climb to +1.0% y/y from +0.8% y/y in March. But once again, do take note that this upside bias is skewed by Easter falling later this year so we'll have to wait until the May and June reports for further clarity on how inflation is actually developing in the region.
0900 GMT - Eurozone March PPI figures
Prior release can be found here. Given that this is a lagging indication of inflationary pressures, the data here is of little significance.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading!
