Calendar of traded news

Services PMI (Jun)

Statistics Canada releases the gross domestic product by industry for April on Friday. The agency’s previous GDP report in May stated that the economy grew at a slower-than-expected annualized pace of 1.3 per cent, largely attributable to a pull back in the real estate market amid new mortgage stress test rules.

The report is forecast to confirm the economy grew a paltry 0.1% in the January-to-March period. On a year-over-year basis, the economy is forecast to grow by just 1.2%, unchanged from an initial estimate. Despite this, the Bank of England last week left the door open for a rate hike at its next meeting in August, as policymakers judged that a slowdown in the economy in the first quarter was temporary and linked to unusually poor weather.

Even though retail sales are projected to hold flat in April, the headline reading for Canada CPI is expected to climb to an annualized 2.6% in May from 2.2% the month prior, and signs of heightening price pressures may encourage the BoC to deliver a 25bp rate-hike at the next meeting on July 11 as ‘developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target.

Even though retail sales are projected to hold flat in April, the headline reading for Canada CPI is expected to climb to an annualized 2.6% in May from 2.2% the month prior, and signs of heightening price pressures may encourage the BoC to deliver a 25bp rate-hike at the next meeting on July 11 as ‘developments since April further reinforce Governing Council’s view that higher interest rates will be warranted to keep inflation near target.

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UK Interest Rate Decision (Jun)

UK MPC vote hike (Jun)

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