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Later today, euro area retail sales figures will also move the dial. The current inflationary environment weighed on consumer spending in March. While economists forecast a modest 0.2% increase in April, an unexpected fall in retail sales would add more pressure on the ECB to hit the pause button.
With the economic calendar on the busier side, investors should monitor central bank chatter throughout the Monday session. However, no ECB members are on the calendar to speak today, leaving commentary with the media to influence.
While no ECB members are speaking, the ECB will release the ECB Consumer Expectation Survey results that need consideration.
It is a quiet session on the US economic calendar. There are no economic indicators to move the dial. The lack of economic indicators will leave Fed chatter to influence.
On Monday, the US ISM Non-Manufacturing PMI numbers provided the Fed doves with more reason to push for a June pause. According to the CME FedWatch Tool, the probability of a 25-basis point June interest rate hike slipped from 25.3% to 21.2% on Monday versus 64.2% one week earlier.
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