It is a light week though with moving fundamentals. A new week in the making and the start is with no other but the infamous U.S housing market. Pending home sales in April are projected today to have dropped 0.5% after 1.0% drop in March. As long as the housing market does not bottom the ongoing spread of weakness is to continue prolonging the rise of the economy, especially that now markets foresee the downside trend to prevail in the labor market.
Two main focus this week is US retail sales and CPI which will have large impact on market's expectation on whether Fed will hike by the end of the year.
Another currency to be focused on is the Canadian dollar, in particular with BoC rate decision scheduled. BoC is expected to cut rates by 25 bps to 2.75%. The Loonie will likely remain pressured even against the weak dollar, which will make it even weaker against other firm currencies like Euro and Aussie.
BoJ is widely expected to leave rated unchanged at 0.50%. Other important data this week include Germany CPI, UK PPI, industrial and manufacturing production and employment report, Japanese Q1 GDP, Australia Job report, and New Zealand retail sales.