The economic calendar was pretty calm during today's Asian session. The April data on household spending in Japan set, albeit not strongly, the direction of the market early in the morning.

Later, data on mortgage loans in Australia could no longer have a significant impact, as the markets today are almost entirely focused on the upcoming release of labor statistics from the United States.

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In Japan, household spending in April decreased by 1.4% compared with the previous month, which was much worse than the projected decline of 0.3%. Expenses increased by 0.1% in March. On an annualized basis, household spending increased by 1.3%, not reaching the projected level of 2.6% and a growth of 2.1% in March.

According to the statistical bureau of the country, the level of consumer spending increased: in transport and communications (+ 12.1%), culture and recreation (+ 5.7%), food (+ 1.9%) and medical care ( + 1.9%). At the same time, a decrease was observed in the expenditures on housing (-10.5%), furniture and household utensils (-6.6%), clothes and footwear (-4.1%), as well as on fuel, electricity, and water (- 3.2%).

After the release, the Japanese yen rose from 108.444 yen to 108.468 yen against the US dollar. At the time of writing, the Japanese currency is trading at 108.470.

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For the single European currency, the data on industrial production and trade in Germany and France will be important today.

While we expect French numbers to have an impact, the market’s focus will be on German numbers. After revising upward production orders in March, the industrial output may turn out to be better than the projected drop of 0.4% in April. This would certainly be support for the euro.

For the British pound, a relatively calm day is expected today. The release of the May housing prices is likely to have a muffled effect on the British currency.

On the political front, this is Theresa May’s last day as the leader of the Conservative Party. At the time of this writing, the pound rose 0.01% to $ 1.269 and looks pretty steady, despite political uncertainty in the country.

Theresa May’s official resignation automatically gives way to the election of a new leader of the ruling Conservative Party of Great Britain. This process should end on the twenties of the next month when the newly elected party leader will also take the place of the head of the British government.

The main favorite in the fight for the posts of the prime minister, both according to polls and according to political analysts is the former Foreign Minister Boris Johnson. He is the most popular politician, both among members of the Conservative Party and among all the voters of the kingdom.

Forex trading recommendations:

GBPUSD: Sell. Entry point – 1, 2699. Take Profit – 1, 2672. Stop Loss – 1, 2745.

EURUSD: Buy. Entry point – 1, 1266. Take Profit – 1, 1278. Stop Loss – 1, 1245.

AUDUSD: Sell. Entry point – 0, 6976. Take Profit – 0, 6962. Stop Loss – 0, 7000.

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