Investment Bank Outlook 21-05-2021
RBC Capital Markets
Day ahead: The data in focus today are the ‘flash’ PMIs from the euro area and the UK, plus UK retail sales. ECB President Lagarde will be making remarks after the Eurogroup finance ministers’ meeting. Riksbank Deputy Governor Jansson will also be giving a speech today on monetary policy.
CAD: Canadian retail sales are expected to increase in March (cons. 2.3%m/m, prior 4.8%) as regions relaxed containment measures. We look to see re-imposed containment measures weigh down activity in April though. Our internal card spending data is tracking a 4% decline in retail sales for the month. USD/CAD features a support zone between 1.1968/1.2013, with resistance at 1.2100 and
Citi
After a long week, Asia markets traded in a more muted fashion overnight. The USD is very modestly lower, with EURUSD heading back towards 1.2250-80 resistance. US equity futures are close to unchanged, oil prices have stabilized as have rates. Asia FX continues to follow broader USD trends for direction, and so the range was respected overnight.
Looking ahead, we have plenty of data during the European session to look forward to. EUR and GBP see the preliminary Markit PMI prints for May. For the former, we expect manufacturing and services to diverge further while for GBP we should see a continued rise in services. UK retail sales in April is hot off the press, and has come in stronger than expected which is an accurate characterization for AUD retail sales too. Otherwise, local news-flow remains key for markets across Latam.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.