The week will see a continuation of the key economic indicators from across the world. The week starts off with the French election results in the main backdrop, and the baton will be passed on to Germany which will be holding elections next.
On the economic front, China will be reporting the monthly inflation figures on Wednesday while it will be a busy week for the UK. Bank of England monetary policy meeting is scheduled for Thursday which will also see the release of the manufacturing production numbers and the central bank’s inflation figures.
The Reserve Bank of New Zealand will also be holding the monetary policy meeting this week, but no changes are expected to the overnight cash rate.
US Data: Inflation set to bounce back
After a rather soft print in March, inflation, as measured by the consumer price index, is all set to post a bounce back in April as well as the producer price index. In March, both gauges of inflation fell on account of the so-called “Easter effects” and lower energy prices.
The April inflation data is expected to show a reversal from March’s dip. Core consumer prices are expected to rise 0.2% on a month over month basis, putting the annual inflation rate back to the 2% year over year threshold. The headline consumer prices, on the other hand, are expected to rise 0.3% on a monthly basis, pushing the annual inflation rate to 2.3%.
Read more: https://www.orbex.com/blog/2017/05/fx-week-ahead-rbnz-boe-take-stage/