Week's main events (May 23 – May 27)

Investors will focus this week on FOMC minutes to get more information on the US central bank's reaction to soaring inflation. US personal income and spending data, which the Fed considers to adjust policy, will also be an important economic event. The UK and Europe manufacturing PMI data should also focus on traders. Investors should also closely monitor the New Zealand Reserve Bank meeting as RBNZ plans to aggressively raise interest rates through the end of the year.

Monday, May 23
On Monday, investors should focus on the Germany Business Climate from the Ifo institute and a speech by the head of the Bank of England. Any hints from Andrew Bailey about monetary policy tightening could give confidence to the pound. It's a bank holiday in Canada.
Main events of the day:
  • – Singapore Consumer Price Index (m/m) at 08:00 (GMT+3);
  • – Eurozone Germany Ifo Business Climate (m/m) at 11:00 (GMT+3);
  • – Eurozone Eurogroup Meetings (Tentative);
  • – UK BoE Gov Bailey Speaks at 19:15 (GMT+3).
Tuesday, May 24
Tuesday will bring various Manufacturing PMI and Services PMI statistics for many countries. Traders should also pay attention to the speech of the heads of the Fed and the ECB. Any hints from Christine Lagarde on monetary policy tightening could give confidence to the euro. On the other hand, any allusions from Jerome Powell toward a more aggressive monetary policy will strengthen the dollar.
Main events of the day:
  • – New Zealand Retail Sales (m/m) at 01:45 (GMT+3);
  • – Australia Manufacturing PMI (m/m) at 02:00 (GMT+3);
  • – Australia Services PMI (m/m) at 02:00 (GMT+3);
  • – Japan Manufacturing PMI (m/m) at 03:30 (GMT+3);
  • – US FOMC Member George Speaks at 02:00 (GMT+3);
  • – Japan Services PMI (m/m) at 03:30 (GMT+3);
  • – Eurozone French Manufacturing PMI (m/m) at 10:15 (GMT+3);
  • – Eurozone Germany Manufacturing PMI (m/m) at 10:30 (GMT+3);
  • – Eurozone Germany Services PMI (m/m) at 10:30 (GMT+3);
  • – Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
  • – Eurozone Services PMI (m/m) at 11:00 (GMT+3);
  • – UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
  • – UK Services PMI (m/m) at 11:30 (GMT+3);
  • – US Manufacturing PMI (m/m) at 16:45 (GMT+3);
  • – US Services PMI (m/m) at 16:45 (GMT+3);
  • – US New Home Sales (m/m) at 17:00 (GMT+3);
  • – US Fed Chair Powell Speaks at 19:20 (GMT+3);
  • – Eurozone ECB President Lagarde Speaks at 21:00 (GMT+3).
Wednesday, May 25
On Wednesday, investors will focus on the FOMC minutes and the New Zealand RBNZ Interest Rate Decision and Monetary Policy Statement. Analysts predict a 0.5% interest rate hike from RBNZ with plans to make another increase at the next meeting. Volatility in pairs with the New Zealand dollar could spike. As for the FOMC minutes, all analysts expect to see a 0.5% rate hike at the next Fed meeting. But if the data is worse than expected, markets could see a huge spike in volatility with USD currency pairs. Germany will update the GDP data for the last quarter. The US Crude Oil Reserves data, which greatly impacts oil prices, should also be on the list.
Main events of the day:
  • – New Zealand RBNZ Interest Rate Decision at 05:00 (GMT+3);
  • – New Zealand RBNZ Monetary Policy Statement at 05:00 (GMT+3);
  • – New Zealand RBNZ Press Conference at 06:00 (GMT+3);
  • – Eurozone Germany GDP (q/q) at 09:00 (GMT+3);
  • – Japan BoJ Governor Kuroda Speaks (Tentative);
  • – Eurozone ECB President Lagarde Speaks at 11:00 (GMT+3);
  • – Eurozone ECB Financial Stability Review at 12:00 (GMT+3);
  • – US Core Durable Goods Orders (m/m) at 15:30 (GMT+3);
  • – US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
  • – US FOMC Member Brainard Speaks at 19:15 (GMT+3).
  • – US FOMC Meeting Minutes at 21:00 (GMT+3).
Thursday, May 26
On Thursday, investors should pay attention to US prelim GDP data for the quarter. Analysts predict a 1.3% slowdown in the economy, which would indicate that the US is heading into a recession. Canadian retail sales data should also be the focus of traders. It’s a bank holiday in Switzerland, France, and Germany.
Main events of the day:
  • – US GDP (q/q) at 15:30 (GMT+3);
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
  • – Canada Retail Sales (m/m) at 15:30 (GMT+3);
  • – US Pending Home Sales (m/m) at 17:00 (GMT+3);
  • – US Natural Gas Storage (w/w) at 17:30 (GMT+3).
Friday, May 27
The most important Friday release is the US PCE Price index, which is on the Fed's list of inflation indicators for regulating monetary policy. Economists expect data to show that personal income and spending remained solid last month despite high inflation.
Main events of the day:
  • – Japan Tokyo Core CPI (m/m) at 02:30 (GMT+3);
  • – Australia Retail Sales (m/m) at 04:30 (GMT+3);
  • – US FOMC Member Bullard Speaks at 14:35 (GMT+3);
  • – US PCE Price index (m/m) at 15:30 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

by JustMarkets, 2022.05.23

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.

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