The week ahead finds a busy economic calendar alongside a series of Fed and ECB appearances that remain in focus given uncertainties over the pace of monetary policy tightening in the US and the EU. Both US and China will update retail sales and industrial production figures for April. In Europe, eurozone Q1 GDP and inflation numbers will be published. Also, the UK, Japan, and Canada will update the inflation data for April.
Monday, May 16
The main focus of investors on Monday will be the data from China. Amid widespread lockdowns that continue to affect
the region, both retail sales and industrial production data are expected to have deteriorated compared to March.
Traders should also pay attention to the report on monetary policy in the UK, as well as the economic outlook for
the Eurozone.
Main events of the day:
- – Japan Producer Price Index (m/m) at 02:50 (GMT+3);
- – China Retail Sales (m/m) at 05:00 (GMT+3);
- – China Industrial Production (m/m) at 05:00 (GMT+3);
- – China Unemployment Rate (m/m) at 05:00 (GMT+3);
- – Eurozone EU Economic Forecasts (m/m) at 12:00 (GMT+3);
- – US NY Empire State Manufacturing Index (m/m) at 15:30 (GMT+3);
- – US FOMC Member Williams Speaks at 15:55 (GMT+3);
- – UK Monetary Policy Report Hearings at 17:15 (GMT+3).
Tuesday, May 17
Various statistics for many countries are expected on Tuesday. The Reserve Bank of Australia will update its
monetary policy statement. There may be hints of monetary policy tightening in this report, so it is important to
watch for changes. Traders should also pay attention to the unemployment rate in the United Kingdom. This indicator
is taken into account by the Bank of England to regulate monetary policy. Investors should also keep a close eye on
the speeches of the head of the US Federal Reserve and the president of the ECB for clues on further monetary
policy.
Main events of the day:
- – Australia RBA Meeting Minutes (m/m) at 04:30 (GMT+3);
- – UK Average Earnings Index (m/m) at 09:00 (GMT+3);
- – UK Claimant Count Change (m/m) at 09:00 (GMT+3);
- – UK Unemployment Rate (m/m) at 09:00 (GMT+3);
- – Eurozone Italian Consumer Price Index (m/m) at 12:00 (GMT+3);
- – Eurozone GDP (q/q) at 12:00 (GMT+3);
- – US FOMC Member Bullard Speaks at 15:00 (GMT+3);
- – US Retail Sales (m/m) at 15:30 (GMT+3);
- – US Industrial Production (m/m) at 16:15 (GMT+3);
- – Eurozone ECB President Lagarde Speaks at 20:00 (GMT+3);
- – US Fed Chair Powell Speaks at 21:00 (GMT+3);
- – US FOMC Member Mester Speaks at 21:30 (GMT+3).
Wednesday, May 18
Wednesday's main event will be the Consumer Price Index data in the United Kingdom, Eurozone, and Canada. Аnalysts
predict a sharp jump in inflation in Britain, while consumer prices in Europe and Canada are forecast at about the
same levels. An increase in the consumer price index tends to cause the national currency to rise in anticipation
that the central bank will tighten monetary policy.
Main events of the day:
- – Japan GDP (q/q) at 02:50 (GMT+3);
- – Australia Wage Price Index (q/q) at 04:30 (GMT+3);
- – Japan Industrial Production (m/m) at 07:30 (GMT+3);
- – UK Consumer Price Index (m/m) at 09:00 (GMT+3);
- – UK Producer Price Index (m/m) at 09:00 (GMT+3);
- – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
- – Eurozone ECB Financial Stability Review at 12:00 (GMT+3);
- – US Building Permits (m/m) at 15:30 (GMT+3);
- – Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
- – US Crude Oil Reserves (w/w) at 17:30 (GMT+3).
Thursday, May 19
Thursday's main event will be the Eurozone ECB Monetary Policy Meeting Accounts. Analysts predict that the ECB plans
to complete a stimulus program for Europe's economy at the next meeting, as well as notify hints of an interest rate
hike at the July meeting. The unemployment rate in Australia should also be the focus of investors. A strong labor
market along with high inflation are signs that the central bank will tighten monetary policy.
Main events of the day:
- – Australia Unemployment Rate (m/m) at 04:30 (GMT+3);
- – New Zealand Annual Budget Release at 05:00 (GMT+3);
- – Eurozone ECB Monetary Policy Meeting Accounts at 14:30 (GMT+3);
- – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
- – US Philadelphia Fed Manufacturing Index (m/m) at 15:30 (GMT+3);
- – US Existing Home Sales (m/m) at 17:00 (GMT+3);
- – US Natural Gas Storage (w/w) at 17:30 (GMT+3).
Friday, May 20
Friday's most important release for investors will be Japan's inflation rate data. The Bank of Japan is pursuing an
ultra-soft monetary policy as it aims to raise the inflation rate to 2%. Analysts predict that Friday's report will
indicate that inflation will reach its target. Volatility in currency pairs with the Japanese yen will increase.
Traders will also look for the interest rate level in China. China cut interest rates last time and is now aiming at
easing monetary policy.
Main events of the day:
- – Japan National Core Consumer Price Index at 02:30 (GMT+3);
- – China PBoC Loan Prime Rate (m/m) at 04:15 (GMT+3);
- – UK Retail Sales (m/m) at 09:00 (GMT+3);
- – US Consumer Confidence (m/m) at 17:00 (GMT+3).
by , 2022.05.16
We advise you to get acquainted with the daily forecasts for the major currency pairs.This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
Open Account