In the US we expect growth in retail sales to have remained relatively subdued in Mayas less boost from weather-related pent-up demand probably continued to weigh a bit. Our forecast is below consensus. Nonetheless, growth in retail sales is still on track toexceed 1.5% q/q in Q2, underscoring that private consumption is poised to boostgrowth substantially in Q2.
Industrial production data released for individual countries in the past week suggeststhat industrial production for the euro area increased 0.7% m/m in April – a tad abovethe current official consensus expectations. Industrial production has been better thanexpected in Italy and Spain, while Germany has disappointed slightly.
In light of the recent string of very strong economic data out of the UK there will alsobe some attention on Bank of England Governor Mark Carney’s speech this eveningat 20:00 CET.
Bank of Japan will announce its monetary decision before markets open in Europetomorrow. Bank of Japan is unlikely to announce any new measures and if it eases atall in 2014, it is unlikely to happen until October.
Outcome of the Swedish (May) inflation numbers has the potential to change marketperceptions of an ‘inevitable’ Riksbank cut in July.
Read the full report: FX Daily