Aussie breaks, Canada GDP and more

31 May, AtoZForex, Lagos – Not much on the calendar on Monday, in terms data releases as US and UK banks were closed on Holiday. Greece is again making headlines after Finance Minister Euclid Tsakalotos stated that the country cannot implement some of the conditional requirements highlighted by European and International Monetary Fund creditors, necessary for the release of a much needed fresh bailout funds.

This development could lead to further delays in the disbursement of much-needed bailout funds to Athens. The country is due to settle IMF loans in June, while bonds of the European Central Bank mature in July. However, an EU official in Brussels confirmed that the two sides were still “working to finalize the measures” required after Athens raised its latest concerns.

For the day, we have the Canada GDP and US CB Consumer Confidence data still due for release.

Australian dollar breaks

Having been quite indecisive in the past week or so, the Australian dollar has now run up higher after the building approval data released earlier today showed better than expected results. Showing a 3.0% change in the number of new building approvals issued. The Aussie rallied across board after the release. With other key data scheduled for release latter in the week, like the GDP, retail sales, and trade balance figures, we expect the currency to be quite volatile this week.

Canada GDP (12:30 P.M GMT)

On aggregate, the Canadian economy contracted 0.1% in February, the first slowdown experienced by the nation in five months amid a contraction in the manufacturing, mining and energy sectors. The GDP is expected to remain flat at -0.1% as the economy is not seen to have picked up much.

CB consumer confidence report (2:00 P.M GMT)

It is a big week for the dollar. The CB consumer confidence report is forecast to show a 96.1 confidence reading as confidence seems to have risen from last month. As reiterated by Yellen on Friday, the Fed’s decision on rate hike will be highly dependent on coming data. Hence, the CB consumer confidence along with the strength of the April NFP are expected to be a strong “deciding factors” as to whether rates will be hiked in June.

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