Economic data coming up in the European session
UK to report Q1 GDP figures today
The big story on the day so far is the kiwi being hammered lower by the RBNZ, as the central bank nearly doubled its QE program while reaffirming that negative rates are not off the table when it comes to future policy decisions.
That is causing the kiwi to sink lower with NZD/USD falling from an initial spike to 0.6098 to a low of 0.6008. Other major currencies traded more modestly in narrow ranges after risk trades retreated in overnight trading amid US-China concerns.
The risk mood remains more tepid for now but with some fear creeping into the market, stocks are finding it tough to manage so far this week amid softer sentiment as well as key technical levels still holding up (still looking at the 61.8 retracement level on the S&P 500).
0600 GMT - UK preliminary Q1 GDP figures
Prior report (Q4) can be found here. UK economic growth was already flattening prior to the virus crisis (remember Brexit?), so the latest developments will just exacerbate the softer underlying tones over the past year. As we have seen everywhere else around the world, economic conditions should reflect a contraction in the UK amid a fall in activity due to the virus outbreak as well as lockdown measures.
0600 GMT - UK March trade balance data
Prior release can be found here. Trade conditions are expected to be subdued due to the fallout from the virus outbreak, but this should all be captured in the Q1 GDP report.
0600 GMT - UK March monthly GDP data
0600 GMT - UK March manufacturing, industrial, construction output
Prior release can be found here. This will merely be an accompaniment to the Q1 GDP report that will be released at the same time.
0900 GMT - Eurozone March industrial production data
Prior release can be found here. Industrial output is expected to sink amid lockdown measures in the region but this has already been well telegraphed by preceding data points and the Eurozone Q1 GDP report two weeks back.
1100 GMT - US MBA mortgage applications w.e. 8 May
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week. Not the biggest of data points, but a general indicator of the housing sector sentiment.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.