The Week Ahead: 16th – 20th May 2022

Overview for the Week Ahead

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

Potential instruments to Trade: AUD Crosses. 

  • 15.00 – US – FOMC Member Bullard Speaks

Potential instruments to Trade: USD Crosses. 

  • 15.30 – US – Core Retail Sales m/m, & Retail Sales m/m

Potential instruments to Trade: USD Crosses. 

  • 21.00 – US – Fed Chair Powell Speaks

Potential instruments to Trade: USD Crosses. 

  • 21.30 – US – FOMC Member Mester Speaks

Potential instruments to Trade: USD Crosses. 

Wednesday 18th May

  • 04.30 – Australia – Wage Price Index q/q

Potential instruments to Trade: AUD Crosses. 

  • 09.00 – GBP – CPI y/y

Potential instruments to Trade: GBP Crosses. 

  • 15.30 – Canada – CPI m/m

Potential instruments to Trade: CAD Crosses. 

Thursday 19th May

  • 04.30 – Australia – Employment Change & Unemployment Rate

Potential instruments to Trade: AUD Crosses. 

  • 05.00 – New Zealand – Annual Budget Release

Potential instruments to Trade: NZD Crosses. 

  • 15.30 – US – Philly Fed Manufacturing Index, & Unemployment Claims

Potential instruments to Trade: USD Crosses. 

  • 17.00 – US – Existing Home Sales

Potential instruments to Trade: USD Crosses. 

Friday 20th May

  • 09.00 – UK – Retail Sales m/m

Potential instruments to Trade: GBP Crosses. 

  • 10.30 – UK – MPC Member Pill Speaks

Potential instruments to Trade: GBP Crosses. 

Saturday 21st May – Australia – Parliamentary Elections

For more information – https://errante.eu/economic-calendar/

If you have any questions or require any assistance, please contact one of our support team members via our Live Chat or email [email protected].

We are Errante. Trading made personal.

Errante is the trading name used by Notely Trading Ltd, an Investment Firm authorized and regulated by the Cyprus Securities and Exchange Commission (CySec) under license number [383/20]. Errante is governed by the Markets of Financial Instruments Directive (MiFID II) of the European Union.

To find out more about Errante, visit https://errante.eu.

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