21st May 2018 to 25th May 2018
Light start to the week as we will only be seeing speeches from FED members Raphael W. Bostic, Patrick T Harker and Neel Kashkari. Eurozone will be close for the Whit Monday bank holiday. Another light day as we will only see mid-tier reports from United Kingdom. First up will be Public Sector Net Borrowing which captures an amount of new debt held by the U.K. government. Next up will be Inflation Report Hearing which will be scrutinized for any fresh clues on the UK economy. Wednesday will bring us reports from UK and US which will create market volatility. First half belongs to UK with Inflation figures and PPI figures. First up will be UK Retail Price Index which is a statistical measure of a weighted average of prices of a specified set of goods and services purchased by consumers. This will be followed by Producer Price Index, which is a monthly measurement of the price changes of goods produced by UK manufacturers. UK Data releases will come to an end with the release of UK CPI which is a key indicator to measure inflation and changes in purchasing trends. US data release will start with Markit Services and Markit PMI which captures the business conditions in the services sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in the United States. The day will end with FOMC meeting minutes which will be a clear guide to the future US interest rate policy while markets will be looking at exact wording on the inflation and changes done on policy statement. The markets will look forward to the most volatile day of the week as European Central Bank release its meeting minutes from the Monetary Policy Meeting, while UK is scheduled to release Retail Sales figures along with US Jobs data and home sales figures. We will first see Consumer Confidence survey from Germany, which will indicate the investors about economic confidence in consumers. The ECB minutes will follow next. The ECB did not change its policies in April and refrained from making any announcement. ECB President Mario Draghi described the economic slowdown as a “moderation” and named temporary factors. The meeting minutes from that event will provide a look into the deliberations within the Governing Council. From UK we will see the release of Retail Sales which measures the total receipts of retail stores. US Jobless claims data release will be closely watched by markets for fresh hints on whether to buy or sell the dollar. It provides a measure of strength in the labor market. The day will come to an end with Housing data. The last day of the week will start with the German IFO Surveys. All 3 surveys will be scrutinized by markets for business and economic conditions in the market. This is followed by UK GDP figures, which is considered as a broad measure of the UK economic activity. To end the week US will release their GD Figures which reflects investment and also feeds into GDP. The day will end with few Speeches from FED Members but key highlight will be on FED President Jerome Powell. This will be an opportunity for Powell to influence the investors to buy more Dollar and markets will be looking for any hints on the upcoming June decision for rate hikes.Monday
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