The economic calendar will end the week with a bang, as governments in the Eurozone, United Kingdom and United States release headline indicators.
The first major report of the day comes our way at 08:00 GMT when the German government reports on the labour market. Germany’s unemployment rate is forecast to hold steady for the month of April.
At 08:30 GMT, the UK’s Office for National Statistics will report on first-quarter gross domestic product (GDP). Analysts are forecasting quarterly growth of 0.3%, which translates into a year-over-year gain of 1.4%.
A slew of sentiment indicators covering the Eurozone will make their way through the financial markets at 09:00 GMT. The European Commission’s statistical agency will report on consumer confidence, services sentiment, industrial confidence, business confidence and the economic sentiment indicator.
The North American session begins with a high-profile report on US first-quarter GDP, which is scheduled for release at 12:30 GMT. The US economy is forecast to have grown 2% annually between January and March, well below Q4’s 2.9% annual pace.
The core personal consumption expenditures (PCE) index, which is the Federal Reserve’s preferred measure of inflation, is forecast to climb 2.4% in the first quarter. That’s well above the central bank’s target of 2% and much higher than the 1.9% pace seen in Q4.
At 14:00 GMT, the University of Michigan will release its final reading of the April consumer sentiment index.
In terms of monetary policy, Bank of England (BOE) Governor Mark Carney will deliver a speech at 14:00 GMT. Colleague and fellow Monetary Policy Committee (MPC) member Andrew Haldane will also deliver a speech at 14:15 GMT.
Later in the day, Baker Hughes Inc. will release its weekly report on active US rig counts. Energy traders will be closely monitoring this report.
Europe’s common currency fell to fresh three-month lows on Thursday following a dovish reading of the ECB’s policy decision. EUR/USD was last seen trading just above 1.2100, having declined roughly 300 pips from this month’s high. The pair is now holding on to the immediate support of 1.2092, which corresponds with the 2017 high.
Cable is bracing for an active session headlined by multiple GDP reports. GBP/USD attempted a rally on Thursday but was pushed back at the 1.3985 level. Prices are back to trading in the low 1.3920 region. Immediate support is located at 1.3895. Resistance is seen at 1.3990.
The Japanese yen steadied on Thursday following a series of brutal declines, as investors turned their attention to the BOJ policy meeting. Speculation about Japanese monetary policy will likely drive the USD/JPY exchange rate on Friday. The pair was last seen trading at 109.27.
