It is a quiet start to the holiday-shortened week in the UK with the CBI distributive trades survey the only release of note. Last week’s strongerthan expected April retail sales release prompted speculation over the extent to which this was impacted by the timing of Easter. However, withthe fundamental drivers of consumer spending generally looking positive, there is no reason to dismiss the strong number. The CBI survey willprovide the first indications of the strength of spending in May, although it should be noted that the correlation between this and the officialmeasure is not always high.
By contrast it is a busy start to what is also a short week in the US. Today’s data releases cover much of the economy including manufacturing,consumer spending and housing. While new home sales fell sharply in March, there have been signs of the market picking up this year until thatpoint and Lloyds bank expects a strong rebound in April. The Conference Board consumer confidence survey will be watched closely as householdspending is seen as a key driver of economic growth this year. Other indicators suggest that consumer confidence has declined in Maypossibly due to higher petrol prices. Finally, durables goods orders and the Richmond and Dallas surveys will provide further evidence of theimpact of the strong dollar on manufacturing.
The material has been provided by InstaForex Company – www.instaforex.com