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US PPI is expected to drop lowering inflation rates, Housing Starts on the rise and Federal Reserve Bank of Clevel, President Sandra Pianalto delivers a speech at the Economic Club, in Pittsburgh and Foreign investors increase their purchases in Canada. With this we open today’s report.

In the US, Producer Price Index  for Finished Goods is foreseen a decrease from 0.7% in April to 0.1% indicating low inflation rates while Core PPI  excluding food and energy is expected to rise from 0.1% in April to 0.2% this month.

In the US, Producer Price Index  for Finished Goods is foreseen a decrease from 0.7% in April to 0.1% indicating low inflation rates while Core PPI  excluding food and energy is expected to rise from 0.1% in April to 0.2% this month.

Later the US, The number of new building projects authorized for construction is expected to drop from 0.69M to 0.68M.

Also in the US, Housing Starts are expected to edge up to 0.66M 30,000 more than in the previous month showing activity in the housing industry

Finally in the US, Federal Reserve Bank of Cleveland President Sandra Pianalto delivers a speech titled “Forecasting in Uncertain Times” at the Economic Club, in Pittsburgh. Should affect key interest rates and may provide information regarding future monetary policy.

In Canada, Foreign Securities Purchases measuring the total value of domestic stocks, bonds, and money-market assets purchased by foreigners during the reported month is expected to increase by 620,000,000 compared to April’s 6.72B due to the strong loonie and the market activity.

For more on USD/CAD, read the  Canadian dollar forecast.

In Europe, German ZEW Economic Sentiment is expected to drop by 5.8 points compared to 53.0 in April may reflect on future economic activity.

Also in  Europe, Deutsche Bundesbank President Axel Weber speaks about G-20 efforts to reform the global financial system, in Berlin Should affect key interest rates and may provide information regarding future monetary policy.

More in  Europe, French Prelim Non-Farm Payrolls, released quarterly, are expected an increase of 0.1% after the decrease of -0.1% in April showing a hopeful recovery of the market and Italian’s Trade Balance reduces the deficit by 0.36B compared to April’s -2.33B.

Later in  Europe, Consumer Price Index measuring the change in the price of goods and services purchased by consumers is expected to remain 1.5%, while the Core CPI excluding food, energy, alcohol, and tobacco is expected to rise from 0.1% to 0.9% though.

Later in  Europe, Trade Balance is showing a drop of 0.1B from 1.8B in April.

For more on the Euro, read the  EUR/USD forecast and Casey Stubbs’  latest analysis.

In Great Britain, Consumer Price Index is released indicating an expected climb of 0.1% from 3.4% in April indicating inflation and rising interest rates while the core Consumer Price Index excluding the volatile food, energy, alcohol, and tobacco items; is expected drop   of 0.1% from 3.0% in April.

Finally in Britain, Retail Price Index is also shows a rise in inflation rates by adding 0.4% from 4.4% in April.

Read more about the Pound in the  GBP/USD forecast.

In Australia, Monetary Policy Meeting Minutes is released providing insight into the economic conditions which affect interest rates change.

In New Zealand, RBNZ Financial Stability Report is issued and will affect interest rates. Note a speech from Malcolm Edey later in the week.

For more on the Aussie, read the  AUD/USD forecast.

In Japan, Household Confidence is expected to rise by 1.3 points showing a careful optimism in the market.

That’s it for today. Happy forex trading!

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