The market awaits EU and US inflation data
EUR/USD could also react to the publication of US personal income and spending and core PCE price index, both at 1.30pm.
The Bank of Japan
In Japan, mixed data raises more uncertainty about the timing of future Bank of Japan (BOJ) rate hikes. Industrial production fell 0.1% in April month-on-month (MoM), after an increase of 4.4% the previous month. The market had anticipated a 0.9% rise. Retail sales increased 2.4% in April year-on-year (YoY), better than the 1.9% expected. Tokyo core consumer price index (CPI) growth accelerated to 1.9% in May YoY from 1.6% the previous month, as expected.
China's manufacturing activity
China's manufacturing activity unexpectedly fell in May. NBS manufacturing PMI dropped to 49.5 in May from 50.4 in April, missing analysts' forecast of 50.4. NBS non-manufacturing Purchasing Managers' Index (PMI) decreased to 51.1 in May from 51.5 in April.
EUR/USD
In Germany, retail sales fell by 1.2% in April MoM. Economists had anticipated a 0.1% fall. At 10 a.m., the market awaits the Eurozone's consumer price index. EUR/USD could also react to the publication of US personal income and spending and the core PCE price index, both at 1.30 p.m.
Dell
In the US, keep an eye on three stocks that published their quarterly reports on Thursday evening. Dell is expected to dive at the open as the group expects its adjusted operating margin to decline by 150 basis points, hurt by higher AI costs. Gap is expected to jump at the open as the group raised its profit forecast, boosted by its old Navy and Gap brands. Costco Wholesale earnings and sales also beat expectations.
US crude stocks
US crude stocks fell last week, according to the Environmental Impact assessment (EIA), as refinery net input of crude oil rose to its highest since December 2019. Crude inventories fell by 4.2 million barrels, while gasoline stocks rose by 2 million barrels and distillate stockpiles by 2.5 million barrels. Oil traders await Baker Hughes data, to be released on Friday at 6 o'clock. Last week, the total rig count fell by four to 600. The number of producing oil rigs remained at 497.
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