What are the main events to look out for today?

There are no notable economic releases in the European session, so we will need to wait for the US session to get something to work with. The main event today will be the US Consumer Confidence report but we will also see the Canadian PPI data and hear from some Fed speakers.

12:30 GMT/08:30 ET Canada April PPI

The Canadian PPI M/M is expected at 0.6% vs. 0.8% prior. The Producer Price Index (PPI) measures the average change over
time in the selling prices received by domestic producers for their
output. It is an important economic indicator used to gauge inflation at
the wholesale level. The PPI covers a wide range of industries,
including manufacturing, mining, agriculture, and utilities.

Even if it’s been rising lately, the PPI is still in negative territory on a year-over-year basis. We will need much higher readings before it starts to become a worrying sign for consumer inflation.

14:00 GMT/10:00 ET US May Consumer Confidence

The US Consumer Confidence is expected to
tick lower in May to 95.9 vs. 97.0 in April. The last
report missed expectations by a big margin
reaching the lowest level since July 2022. The Chief Economists at The
Conference Board highlighted that “Confidence retreated further in April as
consumers became less positive about the current labour market situation, and more
concerned about future business conditions, job availability, and income”.

She further added that “despite April’s
dip in the overall index, since mid-2022, optimism about the present
situation continues to more than offset concerns about the future.” The
Present Situation Index will be something to watch as that’s generally a leading indicator
for the unemployment rate.

Central Bank speakers:

• 13:55 GMT/09:55 ET – Fed’s Kashkari (hawk – non voter).
• 17:05 GMT/13:00 ET – Fed’s Cook (dove – voter).
• 17:05 GMT/13:00 ET – Fed’s Daly (neutral – voter).

This article was written by Giuseppe Dellamotta at www.forexlive.com.