The week ahead – All Eyes on US Inflation Data

Key Upcoming Events:

• UK Unemployment Rate 09:00 (GMT+3) Tuesday 14^th May
• US PPI 15:30 (GMT+3) Tuesday 14^th May
• US Inflation Rate 15:30 (GMT+3) Wednesday 15^th May

US Inflation Data and Retail Sales: U.S. inflation metrics take the spotlight for the upcoming week, with the Producer Price Index (PPI) due Tuesday and the Consumer Price Index (CPI) on Wednesday. A moderation in inflation could signal potential interest rate cuts later in the year. Additionally, Wednesday’s retail sales data, projected to reflect a slowdown to 0.4% growth, will offer more insights into consumer spending and economic conditions.

Jerome Powell’s Speech: Before the release of the CPI data, Fed Chair Jerome Powell is scheduled to speak. His comments could provide crucial insights into the Federal Reserve’s outlook and influence market expectations ahead of the inflation report.

UK Employment and Wage Data: In the UK, the focus will be on upcoming employment and wage figures. The Bank of England has shown increasing openness to rate cuts, with more MPC members supporting a decrease. The severity of any downturn in employment and wage data could accelerate the BoE’s rate cut decision, potentially as early as June.

German and Eurozone Data: German economic sentiment and inflation numbers, along with Eurozone GDP and inflation updates, will be key drivers for the EUR this week. Positive data may reduce the urgency for further ECB rate cuts.

This week the markets will be closely following economic data & earnings reports such as:

Monday:

• AU NAB Business Confidence APR
• US Consumer Inflation Expectations APR
• EU Eurogroup Meeting

Tuesday:

• JP PPI MoM APR
• DE Inflation Rate MoM Final APR
• GB Unemployment Rate MAR
• EU ZEW Economic Sentiment Index MAY         
• US PPI MoM APR
• US Fed Chair Powell Speech
• OPEC Monthly Report
• Earnings Reports:
  • The Home Depot, Inc.
  • Alibaba Group Holding Limited

Wednesday:

• EU GDP Growth Rate QoQ 2nd Est Q1
• US Inflation Rate MoM APR
• US Retail Sales MoM APR         
• Earnings Reports:
  • Cisco Systems, Inc.

Thursday:

• JP GDP Growth Rate QoQ Prel Q1
• US Building Permits Prel APR
• Earnings Reports:
  • Walmart Inc.
  • Applied Materials, Inc.
  • Deere & Company

Friday:

• CN Industrial Production YoY APR
• EU Inflation Rate MoM Final APR

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