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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Wednesday kicks off with German retail sales at 0700BST, followed by BOE money and credit data at 0930BST. In the North Americas, the release of Canadian Building Permits at 1330BST is of note.
German retail sales forecast to drop
Retail sales rose sharply in March by 7.7% as some restrictions had been eased. This was the second consecutive increase after sales rose 2.7% in February. Compared to February 2020 sales were 4.4% higher. However, as restrictions got tightened again in April, retail sales are forecast to drop by 2.3% in April. Annual sales are seen at 10.2% in April, down from 11.0% recorded in March.
The services PMI slipped to contraction territory in April before it picked up again in May. May's flash report showed an uptick in business activity, which was the strongest since July 2020 and it was linked to a renewed easing of lockdown restrictions. Improving business activity in the service sector bodes well with future consumer spending.
Source: Destatis
BOE mortgage approvals seen broadly unchanged
The UK mortgage market remained strong in March with mortgage borrowing surging to GBP 11.8bn, showing the highest reading on record. In April, markets expect mortgage borrowing to decline to GBP 6.8bn, while mortgage approvals are seen at 82,500. Mortgage approvals already eased slightly in March to 82,735. Net consumer credit is forecast to post a positive reading at GBP 0.5bn in April, following seven months of net repayments. March saw the lowest net repayment of net consumer credit at GBP 0.5bn in the last seven months.
Canadian building permits seen decreasing
Markets are looking for Canadian building permits to decline by 4.8% in April, after rising by 5.7% in the previous month. March's increase marked the third successive record increase, reflecting a booming residential sector, Statcan noted. Especially the residential sector posted record readings with multi-family dwellings surging 24.5%, while single-family homes jumped to 7.6%.
The events calendar throws up a busy schedule on Wednesday. The main events to look out for include speeches by ECB's Frank Elderson and Christine Lagarde as well as Philly Fed's Patrick Harker and Dallas Fed's Rob Kaplan.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.