A look ahead to Friday’s trade
Optimism has been the theme of the week in global markets as China-US tensions are brushed off once again.
Economic data wasn’t a market mover today but at some point that will change, and tomorrow is as good of a day as any. That’s because there are some top-tier releases in a busy day of data.
The headline report is the April US personal income and spending report. It’s forecast to show a 12.9% drop in US personal spending following the 7.3% decline in March. It’s a full COVID-19 month and will supply the baseline for the recovery. Income and inflation numbers will also be items to watch.
Later in the day we get the final May consumer sentiment report from the University of Michigan and Powell will speak at 11 am ET in a virtual discussion.
For Canada, the March GDP report is on deck and expected to show an 8.9% m/m contraction, which would be the worst ever. That would put the quarter at -10.0% on an annualized basis.
The loonie hasn’t joined in on the risk party today, in part because of housing worries.