PM goes cautious on easing of lock-down restrictions. Sterling not impressed!
Markets start the week where it finished last week. PM Johnson yesterday announced a three-stage plan and a Covid-19 alert system that will govern the easing of lockdown restrictions in the UK. These included the “first careful steps” to easing lockdown rules, and allowed for unlimited leisure time, while those who could not work from home were offered the opportunity to return to their normal place of work. The Government will lay out a more extensive set of guidelines at 14:00 BST, while Prime Minister Johnson is set to appear before Parliament at around 15:30 BST to expand on Sunday' night's address.
This week’s economic data is made up of 1st & 2nd importance tier from the month of April/March with most focus on the UK and Germany Q1 GDP figures. The GDP data will provide some insight into the early effects that both economies experienced as they went into lockdown in March. For the US, the focus will be on tomorrow afternoon Inflation data and Friday's Retail sales data.
While we have not mentioned the dreaded Brexit word in a while it is still lingering around like a bad smell which is about to get a whole lot stronger! EU/UK trade negotiations reopen today (the penultimate round ahead of the deadline for a transition extension) with negotiators looking to make progress on the key issues of market divergence and fishing rights which are said to be holding back progress. If progress is not made over coming weeks the UK has until July 1st to request an extension to negotiations, which would release some pressure out of what could potentially become a high-pressure cooker situation for all Sterling exchange rates. However, the UK Government has thus far maintained a steadfast position that it would not be seeking an extension, saying there was enough time and scope to reach agreement under the existing framework.
Tuesday,12th May, 2020
13:30 USD Consumer Price (Apr)
19:00 USD Monthly Budget Statement(Apr)
22:00 USD Fed's Mester speech.
Wednesday, 13th May, 2020
00:01 GBP Retail Sales (Apr)
07:00 GBP Industrial Production (Mar)
07:00 GBP Manufacturing Production (Mar)
07:00 GBP Gross Domestic Product (Q1) PREL
07:00 GBP Gross Domestic Product (Mar)
10:00 EUR Industrial Production (Mar)
13:30 USD Producer Price Index ex Food & Energy (Apr)
Thursday,14th May, 2020
06:30 EUR France ILO Unemployment (Q1)
07:00 EUR Harmonized Index of Consumer Prices (Apr)
09:00 EUR Economic Bulletin - (REPORT)
13:30 USD Initial Jobless Claims (May 8)
Friday, 15th May, 2020
07:00 EUR German Gross Domestic Product (Q1) PREL
10:00 EUR Employment Change (Q1) PREL
10:00 EUR EZ Gross Domestic Product (Q1) PREL
10:00 EUR Employment Change (QoQ)(Q1) PREL
13:30 USD Retail Sales Control Group(Apr)
14:15 USD Industrial Production (MoM)(Apr)
15:00 USD Michigan Consumer Sentiment (May)