This week, traders will be following the latest data on US Nonfarm Payrolls. Australia is to report on its GDP and release the RBA’s interest rate. Theresa May will quit as British Prime Minister. Meanwhile, the President of the United States is to visit the UK, and the British Parliament will make another attempt to adopt the agreement on the country’s withdrawal from the European Union.
The US PMI. New Apple gadgets. Trump in the UK
At 14:00 GMT, the US releases its May data on PMI. Experts expect it to come out at 53.3 points. The reading has been lower than this figure just once since the beginning of the year. However, it can still sag against the background of worsened relations with China.
Apple is to hold the Worldwide Developers Conference. During the Conference, they will present the updates for the iOS, macOS and watchOS. Many standard features of iPhone, iPad, Apple Watch, Apple TV and Mac will be changed.
The event is unlikely to affect the company’s stock. However, experts will be actively following the demonstration of new products, assessing the prospects of the company.
A three-day official visit of US President Donald Trump to the UK is expected to start on June 3. The US President is to meet Queen Elizabeth II, Prince Charles and other members of the royal family.
The American leader is expected to give new comments on a trade deal with China, as well as on post-Brexit relations between Washington and London.
RBA’s interest rate. New vote on Brexit
At 04:30 GMT, the Reserve Bank of Australia releases its interest rate decision. This time, they are quite likely to reduce the key rate from 1.5% to 1.25%. The regulator is looking for drivers of economic growth amid a slowdown in China’s economic development.
British Parliament will consider an updated agreement on the country’s withdrawal from the European Union. If there is another failure of the vote, the chances of a “no-deal” Brexit will rise sharply. Boris Johnson, Theresa May’s potential successor, insists on this scenario.
Australia’s GDP. A fine for Italy
At 01:30 GMT, Australia will release a report on its quarterly GDP. According to experts, we should expect GDP to be up to 2.5% year-on-year.
The European Commission may initiate a disciplinary steps against Italy over the country’s rising public debt. Eventually, the country may face a fine of €3.5 billion. However, the Italian government is not ready to admit mistakes and requires a revision of the EU budgetary rules.
The confrontation destabilizes the situation in the EU. This may be best confirmed by the rate of the European currency, which has updated its annual low.
ECB’s interest rate
At 11:45 GMT, the ECB releases its interest rate decisions. We do not expect any changes in the bank’s policy or revision of economic outlooks. In the comments, the regulator is expected to report on the compliance of the economic situation in Europe with the outlook.
Nonfarm payrolls. Theresa May’s resignation
At 12:30 GMT the market will react to the report on the US Nonfarm Payrolls. The first Friday of the month provides high trading volatility.
The current Prime Minister of Great Britain Theresa May will resign. Over a dozen Conservatives are now fighting for this position. Experts believe that the current favorite to replace May is the former foreign secretary Boris Johnson.
The election of a new prime minister will give the British parliament a chance to reboot and complete its work on a draft agreement on the country’s withdrawal from the European Union.