Swiss Unemployment Rate (MAY) (05:45 GMT; 01:45 EST)
Consensus:   3.4%
Previous:   3.5%

Outlook: The Swiss labor market is expected to have sustained its trend of improvement during May, with expectations for the unemployment rate to have fallen to 3.4 percent.  As the Swiss economy continues to improve, businesses are becoming more confident about the future of demand and in response attempt to boost productivity through hiring more workers.  Contributing to the expectations was the leading indicators index for May, which released at a 2-year high, with improvements across the board.  Additionally, while manufacturing did not expand quite as quickly in May as during April, the 63.5 post in the PMI is well above the 50.0 expansionary level.  With global economies expanding along with the Swiss economy, exports rose in tandem for May.  This has compounded demand for Swiss companies and in turn spurred further hiring.  As payrolls grow, consumer sentiment will advance; strengthening the economy even more as workers spend with confidence in their futures.  This trend in labor market improvements is a huge signal to the Swiss National Bank that the economy is very healthy, and will continue to be in the months to come, and therefore will be able to withstand the planned continuance of monetary policy tightening.

Previous: Swiss joblessness fell to 3.5 percent of the available labor pool in April, the lowest percentage seen in 3 years.  Switzerland has witnessed strong economic expansion, which has spurred investment and hiring.  Also encouraging employers to hire is the heavy demand for exports, which surged 8.6 percent during the month, and is causing companies to ramp up production.  The manufacturing sector improved for the fourteenth straight month in April as producers continue to expand and leading indicators for the month came in well above expected.  This not only contributed to higher employment in April, but is also stimulating business and consumer confidence - both of which should in turn add further momentum to economic growth.

UK Industrial Production (APR) (08:30 GMT; 04:30 EST)
                   (MoM)  (YoY)
Consensus:   0.3%  0.0%
Previous:       0.7%  0.3%

Outlook: After surprisingly strong expansion in the previous month, UK industrial production is expected to have accelerated by 0.3 percent in April.  Increased factory activity can partially be attributed to the high level or demand abroad.  Exports from the UK during the first quarter rose by 4.7 percent, more than double that of the fourth quarter of 2006.  While demand for British produced goods from abroad has undoubtedly lent its weight to factory activity, some of this positive shift is likely to be erased by recent record raw material prices, especially record high crude oil prices. Additionally, manufacturing figures also revealed somewhat tepid numbers for April.   Activity in the sector revealed some level of expansion with the PMI at 53.2, however it continued to creep towards the stagnant 50 level. 

Previous:  Industrial production in the UK witnessed its fastest expansion in 11 months during March, rising 0.7 percent from the February level.  The boost came from faster growth in the global economy, which in turn spurred healthy demand for exports.  UK exports during the first quarter increased by 8 percent with economies picking up in the Euro-zone (which is the destination for more than half of British exports) and the United States.  The Bank of England, after the release, stated that trade will contribute to UK economic growth for the first time since 1995.  The increase in production was led by demand for transport, electrical and optical equipment.  UK factories also ramped up production of television and radios in anticipation of demand that is expected due to World Cup soccer match scheduled for June.

Bank of England Rate Decision (11:00 GMT; 07:00 EST)
Consensus:   4.50%
Previous:  4.50%

Outlook: The Bank of Englandââ,¬â"¢s Monetary Policy Committee is expected to conclude its rate policy meetings on Thursday with the conclusion that a tenth pass would be for the economy.  Fundamentally, much of the speculation that supported a rate hike in the wake of the previous meeting has abated.  Initial improvements in the housing market from months earlier have tempered with more recent data.  The Nationwide Housing price indicator for May fell short of expectations of an acceleration, while mortgage approvals from the month before slowed.  While this has not spelled doom for the market, it also doesnââ,¬â"¢t give the central bank much incentive to consider a rate hike that would further slow housing development.  The other development that was fueling speculation of a rate hike came from signs that the manufacturing sector, which was ailing last year, is rebounding.  As was the case in the housing, manufacturing data was mixed.  While the manufacturing production indicator for March rose 0.7%, greater than expected; a more recent PMI survey for the same sector revealed a drop due to higher input costs.  Above all this however remains perhaps the most influential piece of data - inflation.  The consumer price index rose on an annual basis to 2.0% in April, yet this is right in line with the bankââ,¬â"¢s target rate. One very real, strong basis for greater potential of a rate hike exists however.  With the departure of committee member Stephen Nickell goes the only vote for a rate cut that has come from the board in some time.

European Central Bank (01:30 GMT; 21:30 EST)
Consensus:   2.75%
Previous:  2.50%

Outlook: The European regionââ,¬â"¢s central bank is approaching another highly anticipated interest rate hike.  Running into the decision, fundamental indicators, officialsââ,¬â"¢ chatter and market speculation have been running high.  Drawing from the most reliable information out in the market, the fundamental data, the argument for another rate hike becomes clear.  Foremost, the most recent inflation data available shows that the annual measure of consumer product price growth accelerated to 2.4% in April, still off of the target 2%.  Additionally, the government reported in its inflationary estimate for May that it expects inflation will push even higher to 2.5% over the period.  Aside from price growth, economic figures have suggested the economy continues to run at a healthy pace.  First revisions of GDP showed first quarter output grow 0.6%.  Amongst consumers, retails sales in the zone outpaced expectations with a 1.4% rise in April while consumer confidence for the following month edged higher.  European businesses are also looking at broadly better figures as manufacturing and service sectors improve, while inflation through PPI measures continue to rise.  From this strong data, speculation has sprung up in the market suggesting that the central bank will be more aggressive in its hawkish policy stance come Thursdayââ,¬â"¢s rate meeting by turning out a 50 basis point hike.  This speculation has been tempered somewhat however by comments that have been made outside the rate setting body.  Both Austriaââ,¬â"¢s and Franceââ,¬â"¢s finance ministers have voiced opinions that inflation is under control and that the exchange rate could be lower.  While this is politically motivated, it still has its affects on market expectations.

Richard Lee is a Currency Strategist at FXCM.