This week, we recommend paying attention to the publication of data on prices and volumes of retail sales in the US on Tuesday, May 17. The speeches of the heads of the ECB Christine Lagarde and of the Fed Jerome Powell are expected on the same day. The Eurozone Consumer Price Index will be known on Wednesday, May 18, and data on manufacturing activity and the state of the labour market in the United States will be received on Thursday, May 19.
We expect this week that:
US retail sales likely to rise for third straight month
China data to show lockdown effects
ECB minutes will be looked to for normalisation clues
The retail sector will be in focus this week after a string of wild trading sessions on Wall Street. Quarterly financials from megastore Walmart (WMT) and other consumer giants are in the queue, in addition to April’s retail sales report scheduled for release Tuesday.
Investors will tune in for additional remarks from Federal Reserve officials, including Chair Jerome Powell in the week ahead, as inflation continues to run hot across the U.S. economy.
In other news, Germany plans to stop importing Russian oil by the end of the year even if the European Union fails to agree on an EU-wide ban in its next set of sanctions, government officials. With the European Union foreign ministers meeting in Brussels on Monday to discuss the next round of sanctions, EU diplomats have floated a delay in the phased-in oil ban after Hungary objected, saying the step would be too damaging to its economy.
In Crypto news, the market suffers very serious losses. Bitcoin has lost about 45% of its value since the end of March, hitting $26,580 on May 12. Most other coins feel even worse. As has been said many times, the cause of panic is the global drop in investor risk appetite. The crypto market only follows in the wake of the stock market: the correlation between digital asset quotes and stock indices S&P500, Dow Jones and Nasdaq is at its maximum.
The tightening of the monetary policy of the US Federal Reserve, new outbreaks of coronavirus in China, fears about the future of the EU economy: all this has led investors to prefer the dollar over risky assets. An additional driver is rising yields on 10-year US Treasury bonds. This figure has almost doubled since March and rose over 3%: to the highest level since 2018, exceeding the returns of most sectors of the US stock market.
Plan your trades carefully and have a great trading week!
This Week’s High Impact Events
The times below are GMT +3.
Monday 16th May
12.00 – Europe – EU Economic Forecasts
Potential instruments to Trade: EUR Crosses.
17.15 – UK – Monetary Policy Report Hearings
Potential instruments to Trade: GBP Crosses.
Tuesday 17th May
04.30 – Australia – Monetary Policy Report Hearings
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
3rd Party Cookies
This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.
Keeping this cookie enabled helps us to improve our website.
Please enable Strictly Necessary Cookies first so that we can save your preferences!
