The Week Ahead – Economic Data and Central Bank Chatter in Focus

On the Macro

It’s a quieter week ahead on the economic calendar, with 47 stats in focus in the week ending May 13. In the week prior, 62 stats were in focus.

For the Dollar:

Inflation is back in the spotlight, with consumer and wholesale inflation figures due out on Wednesday and Thursday.

Another spike in inflation would test support for riskier assets following the Fed’s forward guidance from last week.

On Thursday, initial jobless claims will also draw interest ahead of consumer sentiment figures on Friday.

While the stats will influence, news updates on the war in Ukraine and FOMC member chatter will also need monitoring.

In the week ending 6^th May, the Dollar Spot Index rose by 0.68% to 103.660.

For the EUR:

ZEW Economic Sentiment figures for Germany and the Eurozone will be in focus on Tuesday.

On Friday, Eurozone industrial production numbers will influence.

Other stats in the week include finalized member state inflation figures for May that should have a muted impact on the EUR.

ECB President Lagarde will also draw interest on Wednesday, with the markets looking for any forward guidance on monetary policy.

For the week, the EUR rose by 0.06% to $1.0551.

For the Pound:

It is a busy week, with key stats including Q1 GDP and March industrial and manufacturing production figures.

Trade data and BRC retail sales figures are also due out but should have a muted impact on the Pound.

The Pound slid by 1.79% to end the week at $1.2348.

For the Loonie:

It’s a quiet week ahead on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.

A lack of stats will leave the Loonie in the hands of Geopolitics, OPEC, and crude oil prices.

The Loonie ended the week down 0.21% to C$1.2875 against the U.S Dollar.

From the Asia Pacific

For the Aussie Dollar:

Business and consumer confidence will be in focus in the week ahead.

On Tuesday, NAB Business Confidence figures are due out ahead of Westpac Consumer Sentiment numbers on Wednesday.

The RBA will be eyeing the numbers, with the need to curb inflationary pressures amidst heightened economic uncertainty could test sentiment.

The Aussie Dollar rose by 0.21% to $0.7076.

For the Kiwi Dollar:

Electronic card retail sales and business PMI numbers are due out in the week ahead.

While the numbers will influence, data and news updates from China will remain key.

The Kiwi Dollar ended the week down by 0.74% to $0.6410.

For the Japanese Yen:

It’s a relatively quiet week ahead. Finalized service sector PMI numbers for April and household spending figures are due out early in the week. Expect both sets of numbers to draw plenty of interest following the BoJ’s most recent dovish signals.

The Japanese Yen declined by 0.66% to ¥130.560 against the US dollar.

Out of China

On Monday, trade data will draw interest, with the markets looking to assess the impact of China’s COVID-19 lockdown measures and the war in Ukraine on demand.

Inflation figures, due out on Wednesday, will influence.

The markets will also be looking for updates from Beijing on COVID-19 lockdown measures.

The Chinese Yuan ended the week down by 0.88% to CNY6.6667 against the US dollar.

Geo-Politics

News updates on the war in Ukraine and chatter from Russia will need continued monitoring.