FX Stabilizes Ahead of US Data

At 7:00 AM Canada April Unemployment Rate (exp 6.1%, prev 6.1%)
Canada April Jobs-Change (exp 18.0k, prev 54.9k)
At 8:30 AM US April Retail Sales m/m (exp 0.4%, prev 0.7%)
US April Retail Sales ex-autos m/m (exp 0.4%, prev 0.8%)
US April PPI m/m (exp 0.6%, prev 1.0%)
US April PPI-x m/m (exp 0.2%, prev 0.0%)
At 10:00 AM US March Business Inventories (exp 0.3%, prev 0.3%)

Central bank policy decisions were largely anticipated, with the ECB remaining on hold while signaling a June hike and the BoE raising its benchmark-lending rate by 25-basis points. Price action in the currency market benefited the dollar, advancing 1.9773 versus the sterling at 1.3465 against the euro. Traders continue to reassess global interest rate differentials following commentary from the FOMC, ECB and BoE over the past 48 hours and are factoring in less aggressive policy tightening from the latter two central banks over the coming months.

Economic reports slated for release in the coming session include Canada’s labor report and US retail sales, PPI and business inventories. Canada’s April unemployment rate is seen unchanged at 6.1% while the jobs-change in the same month are seen at 18.0k, down from 54.9k in the previous month.