The markets were trading mixed amid a day that saw weaker economic reports from the Eurozone and a slightly upbeat jobs report from the UK. The U.S. dollar gained strength late in the day as the currency surged on rising yields.
The UK’s monthly jobs report showed that real wages were finally starting to grow. Average earnings excluding bonuses rose at a pace of 2.9% in the first quarter of the month as the UK’s unemployment rate held steady at 4.2%, unchanged from the month before. The employment rate also increased to 75.6%.
Data from the Eurozone was somewhat subdued. Germany’s first quarter GDP growth was seen rising at a pace of just 0.3% compared to the 0.7% increase seen in the previous quarter. The Eurozone’s second revised GDP estimate was unchanged at 0.4%.
Looking ahead, the economic calendar for the day will see the release of the final inflation figures from the Eurozone. Economists forecast that the headline CPI increased 1.2% on the year in April while core CPI is forecast to rise at a slower pace of 0.7% on the year. The ECB President Mario Draghi is expected to speak later in the day.
Data from the U.S. will see the release of the monthly building permits data while Canada’s manufacturing sales is expected as well. Later in the evening, the SNB Chairman, Thomas Jordan is expected to speak.
