Mexico Retail Sales (MoM) came in at 0.1%, below expectations (0.5%) in March

Mexico Retail Sales (YoY) came in at 2.9% below forecasts (3.1%) in March

The Australian Dollar (AUD) trades lower against its major currency peers, is down 0.28% to near 0.7130 against the US Dollar (USD) during the European trading session on Thursday. The antipodean faces selling pressure due to risk-off market sentiment and soft Australian employment data for April.

TD Securities analysts highlight that April Federal Open Market Committee (FOMC) minutes showed growing support to drop the easing bias, with many participants and several regional presidents favoring a more neutral stance.

According to Reuters, Iran's Supreme Leader has ordered that near-weapons-grade uranium must stay in Iran. The agency also reported that sources familiar believe Supreme Leader's directive reflects consensus among the Iranian establishment.

The Euro’s (EUR) frail recovery attempt against the British Pound (GBP) has been capped below 0.8660, as the pair retreats on Thursday, testing one and a half week lows below 0.8642 at the time of writing.

ING analysts Warren Patterson and Ewa Manthey say the Brent market remains highly sensitive to Iran-related news, with prices dropping sharply on renewed hopes of a US-Iran agreement and improved tanker flows through the Strait of Hormuz.

Danske Bank’s Danske Research Team notes that EUR/USD has seen only a modest move higher, with the pair holding just above 1.16 despite falling global yields.

Spain 5-y Bond Auction increased to 2.959% from previous 2.911%

France's private-sector activity took a deep hit in May, according to preliminary data from S&P Global, suggesting that the surge in Oil prices has hit households and businesses hard in the Eurozone's second-largest economy.

According to Iran’s Iranian Students News Agency (ISNA), Iran is responding to a text sent by the United States (US). The agency has also reported that the visit of Pakistan's army chief to Tehran is in order to minimize the gaps and reach an official announcement of agreement.

The United Kingdom (UK) S&P Global Composite Purchasing Managers' Index (PMI) surprisingly declined in May. The Composite PMI has come in at 48.5, a figure below 50.0 is considered a contraction in the business activity.

Deutsche Bank analysts note the tech-led equity rebound extended into Asia, with the KOSPI and Nikkei sharply higher after Nvidia’s results drew a muted share reaction despite 85% yoy sales growth and stronger-than-expected guidance.

United Kingdom S&P Global Services PMI came in at 47.9, below expectations (51.8) in May

United Kingdom S&P Global Manufacturing PMI registered at 53.7 above expectations (53) in May

United Kingdom S&P Global Composite PMI below forecasts (51.7) in May: Actual (48.5)

Standard Chartered’s Nicholas Chia argues that softer Australian labour data and activity indicators support the view that the Reserve Bank of Australia has likely peaked its cash rate at 4.35%.

Eurozone's preliminary HCOB Composite PMI deteriorates further in May. The Composite PMI arrives lower at 47.5, while it was expected to remain steady at 48.8. A figure below 50.0 is considered a contraction in the business activity.

Eurozone Current Account n.s.a increased to €24.1B in March from previous €21.1B

Eurozone Current Account s.a came in at €14.9B below forecasts (€25.3B) in March

German flash HCOB Composite PMI improves to 48.6 in May, while it was expected to remain steady at 48.4. However, a figure below 50.0 is considered a contraction in the overall business activity.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann report that GBP/USD volatility exceeded expectations, with the pair swinging between 1.3376 and 1.3463.

MUFG’s Michael Wan highlights that Bank Indonesia (BI) surprised markets by raising the BI-Rate 50 basis points to 5.25%, the first hike since April 2024 and first 50bp move since November 2022.

Danske Research Team reports a strong risk-on session in equities, driven by optimism around a possible US–Iran deal and lower Oil prices. Cyclical growth and momentum outperformed, while defensives and energy lagged.

Here is what you need to know on Thursday, May 21:

Switzerland Industrial Production (YoY) below forecasts (0.5%) in 1Q: Actual (-7.1%)

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann maintain a cautious stance on EUR/USD after a dip to 1.1582 was followed by a strong rebound to 1.1644.

Bank of Japan (BoJ) Policy Board Member Junko Koeda said that it’s appropriate to deal with inflation with monetary policy, but there is some time before the June policy meeting, so the central bank will continue to look at any change in balance between price and growth risks, Reuters reported on Th

India HSBC Manufacturing PMI dipped from previous 54.7 to 54.3 in May

India HSBC Services PMI climbed from previous 58.8 to 58.9 in May