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

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·3-min read
In this article:
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On the Macro

It is a busy week ahead on the economic calendar, with stats 75 due out through the week ending May 27. In the week prior, 46 stats were in focus.

For the Dollar:

US consumer confidence will be in focus ahead of private sector PMIs on Wednesday and Friday.
Expect the consumer confidence and the market’s preferred ISM non-manufacturing PMI to draw plenty of interest.

The key stats of the week, however, will be nonfarm payrolls and the unemployment rate on Friday, which could define the Fed’s next move on interest rates.

On the monetary policy front, expect FOMC member chatter to draw plenty of attention.

In the week ending May 27, 2022, the Dollar Spot Index slid by 1.44% to end the week at 101.668. In the week prior, the Index fell by 1.35% to 103.150.

For the EUR:

Early in the week, French GDP and German unemployment figures will draw interest, as will member state and Eurozone inflation.

Mid-week finalized Eurozone manufacturing figures will also draw interest.

After a quiet Thursday, German trade data and finalized service PMI and composite PMI figures will influence.

On the monetary policy front, ECB President Christine Lagarde will also provide direction.

For the week, the EUR jumped by 1.62% to $1.0735. In the previous week, the EUR rallied by 1.46% to $1.05064.

For the Pound:

It is a quiet week ahead, with stats limited to finalized manufacturing PMI numbers for May. The stats are unlikely to have a material impact on the Pound, however.

In the week, the Pound rose by 1.21% to end the week at $1.2631. The Pound rallied by 1.78% to $1.2480 in the week prior.

For the Loonie:

On Tuesday, GDP numbers will be the key stats of the week.

The main event, however, will be the Bank of Canada monetary policy decision on Wednesday.

With the markets expecting a 50-basis point hike, it will come down to the rate statement.

In the week ending May 27, the Loonie rose by 0.90 to C$1.2724 against the greenback. The Loonie rose by 0.69% to C$1.2840 in the week prior.

From the Asia Pacific

For the Aussie Dollar:

Private sector credit and company gross operating profit figures will be in focus on Tuesday.

On Wednesday, the market attention will shift to Q1 GDP numbers ahead of finalized retail sales and trade data on Friday.

In the week, the Aussie Dollar rose by 1.73% to $0.7162.

For the Kiwi Dollar:

It’s a quiet week ahead, with building consents and business confidence numbers due out.

Expect the ANZ Business Confidence report to have the greatest impact.

The Kiwi Dollar rallied by 2.16% to end the week at $0.6532.

For the Japanese Yen:

Prelim industrial production and retail sales figures will draw market interest on Tuesday.

On Wednesday, capital spending figures for the first quarter are also due out ahead of finalized service PMI numbers on Friday.

The Japanese Yen rose by 0.59% to end the week at ¥127.12 against the dollar. In the week prior, the Yen ended the week up 1.04% to ¥127.88.

Out of China

Private sector PMIs are due out in the week ahead. While the NBS numbers will influence on Tuesday, the market’s preferred Caixin Manufacturing PMI should have a greater impact on Wednesday.

In the week ending May 20, the Chinese Yuan slipped by 0.10% to CNY6.6994. The Yuan rose by 1.42% to CNY6.7930 in the week prior.

Geo-Politics

Russia and Ukraine will remain the area of focus in the week ahead, along with chatter from China.

This article was originally posted on FX Empire

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