May and Trump under fire

CAD - Core Retail Sales m/m: 1.5%
USD - Unemployment Claims: 241K
USD - FOMC Member Powell Speaks

Theresa May attended her first European Union summit yesterday since her embarrassing election result two weeks ago. During the evening dinner, May was asked to address leaders and run through her approach to how the UK proposes to treat EU nationals. May proposed that around three million EU citizens would be allowed to continue living in the UK after Brexit. The proposal would grant EU citizens who had lived in the UK for five years the right to stay and access UK benefits, such as health and education. The UK began Brexit talks in Brussels on Monday, however, it was announced yesterday that lawmakers in Scotland could be given a separate vote on the Brexit legislation adding to the already complicated matter.

President Trump has proposed the idea of building a “solar wall” along the U.S./ Mexico border. The president claimed that this idea will help to cut the production costs for both countries. An optimistic Trump stated that the solar wall concept had already been pitched to academics and businesses. The US President went on to add that eventually the wall would pay for itself and the bigger the wall is the more valuable and resourceful it would be.

CAD - CPI m/m
CAD - Common CPI y/y
USD - Flash Services PMI

We finish the week with a raft of PMI data from the Eurozone and the States. This morning the single currency union release both manufacturing and services PMI, both forecast to remain in healthy expansion territory at 56.9 and 56.2 respectively.

Across the pond, the US release their PMI figures, with both readings forecast to improve on the previous figures. To finish the week, we have US new home sales released as we gain an insight into the US housing industry.