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19 May 2015
Key events ahead: UK headline CPI to see a positive print for April – TDS
FXStreet (Barcelona) - The TD Securities Team previews the key data releases ahead in the day – UK CPI, German ZEW, and US housing starts.
Key Quotes
“We look for UK headline CPI to eke out a positive 0.1% y/y print for April, defying the BoE’s expectation that we will see UK inflation dip into negative territory this month and just above the consensus expectation for a flat print. We see UK inflation just avoiding the dip into deflation by the skin of its teeth, with the April and June vintages the last seeming chance for that ignominious feat.”
“EUR The German ZEW for May is expected to show declines in both the current and expectations components. While we agree, we think it may be possible for the expectations component to decline less than the four points expected by consensus and continue to linger closer to the recent highs.“
“USD April housing starts and building permits will be the only item on the domestic docket on Tuesday, with starts expected to rebound 11.2% to 1030K and permits set to edge 0.8% higher to 1050K. While the NAHB index started the week on a softer note, we look for firmer housing data to provide some counterbalance to generally slipping economic data momentum.”
Key Quotes
“We look for UK headline CPI to eke out a positive 0.1% y/y print for April, defying the BoE’s expectation that we will see UK inflation dip into negative territory this month and just above the consensus expectation for a flat print. We see UK inflation just avoiding the dip into deflation by the skin of its teeth, with the April and June vintages the last seeming chance for that ignominious feat.”
“EUR The German ZEW for May is expected to show declines in both the current and expectations components. While we agree, we think it may be possible for the expectations component to decline less than the four points expected by consensus and continue to linger closer to the recent highs.“
“USD April housing starts and building permits will be the only item on the domestic docket on Tuesday, with starts expected to rebound 11.2% to 1030K and permits set to edge 0.8% higher to 1050K. While the NAHB index started the week on a softer note, we look for firmer housing data to provide some counterbalance to generally slipping economic data momentum.”