US Economic Data and BoC Rate Statement In Focus
Markets continue to be influenced by the political situation in Italy. But in the meantime, there are a lot of data that will be of interest to traders today, including the decision on the interest rate of the Bank of Canada. It is widely expected that the overnight interest rate will be maintained at 1.25%. The Bank of Canada has raised the key rate three times since July 2017, but the dynamics in 2018 slowed due to a not very good economic start.
The US will publish the second flash reading of the first quarter GDP. The reading is expected to show the economy expanded 2.3%, in-line with the preliminary estimate seen last month. ADP nonfarm employment report is expected to show 190.000 private sector jobs were created in May, slightly below the 204.000 jobs created in the prior month.
Today's data showed, that German inflation rose at a faster pace than expected this month, topping the European Central Bank's target level. The consumer price index rose 2.2% in May, compared with the same month a year earlier. Economists had expected annual inflation to increase 2.0% after rising 1.6% in April. Consumer prices, harmonized to compare with other Eurozone countries, grew by also 2.2% from the previous year, above forecasts of 1.8% and compared to a 1.4% growth in the previous month.