Tensions in UK politics after local elections

  1. Theresa May’s Conservative party did better than expected on the local elections on Thursday and avoided new headaches.
  2. Despite that, tensions seem to continue within a deeply divided Conservative party about the customs union issue.
  3. Media suggest that in an effort to talk down the issue, a minister stated that Britain is still weeks away from making a decision on the customs union issue, however new debates sparked.
  4. Should there be further negative headlines about UK politics we could see the pound weakening.

Some BoJ members were against premature exit debate

  1. BoJ released it’s 8-9 March meeting minutes.
  2. It seems to be the case that a number of BoJ members warned against the premature debate of an exit for the ultra loose policy.
  3. Also some board members expressed their concern regarding the weakness in inflation and consumption.
  4. Should there be further dovish comments on the issue we could see the JPY weakening.

Today’s other economic highlights

  • Germany: Industrial Orders for March, Survey:+0.5% mom Prior:+0.3% mom, 06:00 (GMT), could strengthen the EUR
  • Speakers: FOMC Members Bostic (18:00, GMT) and Evans (19:30, GMT) speak.

As for the rest of the week:

  • Tuesday: From Australia we get the Retail Sales for March and from Germany the Industrial Output and Trade Balance for March
  • Wednesday: From China we get the Trade Balance figure for April and from Sweden the CPI rate for April
  • Thursday: Early in the Asian morning, RBNZ’s interest rate decision will be released, Japan’s Current Account balance for March, China’s CPI rate BoE’s Interest rate decision, in the European session we will have the Avast IPO on LSE and in the American session we get the US inflation data.
  • Friday: In the American session we get Canada’s employment data for April and from the US, the preliminary University of Michigan Sentiment indicator for May

IronFX Daily Market Report ‘May 7th’

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4.9 rating based on 1,166 ratings
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2

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3.5 rating based on 93 ratings
3.5/5 93
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3.6 rating based on 99 ratings
3.6/5 99
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3.9 rating based on 43 ratings
3.9/5 43
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3.9/5 7130
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1.9 rating based on 4,447 ratings
1.9/5 4447
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