The Week Ahead: 9th – 13th May 2022

Overview for the Week Ahead

Asian markets were in retreat on Monday as U.S. stock futures slid on rate worries, and a tightening lockdown in Shanghai stoked concerns about global economic growth and possible recession.

There was no let-up in China’s zero-COVID policy with Shanghai tightening the city-wide COVID lockdown for 25 million residents.

Investors are also tense ahead of the U.S. consumer price report due on Wednesday where only a slight easing in inflation is forecast, and certainly nothing to prevent the Federal Reserve from hiking by at least 50 basis points in June. Core inflation is seen rising by 0.4% in April, up from 0.3% the previous month, even as the annual pace dips a bit due to base effects.

The latest data on Germany’s ZEW sentiment index and preliminary first quarter GDP data from the U.K. will highlight the dilemma central banks are facing as they try to combat soaring prices amid heightened concerns over the outlook for growth.

Economists are expecting the ZEW index to have dropped again in April from a level that was already the lowest since the beginning of the pandemic in 2020.

In the U.K., the economy is expected to have expanded by 1% in the first quarter, but the monthly reading for March is expected to be flat.

Last week the Bank of England warned that Britain risks a double-whammy of a recession and inflation above 10% as it hiked interest rates to 1%, their highest since 2009.

Several European Central Bank officials are due to speak during the coming week, including President Christine Lagarde on Wednesday.

The European Union is close to agreeing on a fresh round of sanctions against Moscow for invading Ukraine, including a phased embargo on Russian oil, which makes up over a quarter of EU imports.

The move will push European refineries into a race to find new crude suppliers and leave drivers with bigger bills at the pump at a time when the cost-of-living crisis is squeezing consumers globally.

Plan your trades carefully and have a great trading week!

This Week’s High Impact Events

The times below are GMT +3.

Monday 9th May

  • 16.00 – UK – MPC Member Saunders Speaks

Potential instruments to Trade: GBP Crosses. 

Tuesday 10th May

  • 20.00 – US – FOMC Member Waller Speaks

Potential instruments to Trade: USD Crosses. 

  • 22.00 – US – FOMC Member Mester Speaks

Potential instruments to Trade: USD Crosses. 

Wednesday 11th May

  • 11.00 – Europe – ECB President Lagarde Speaks

Potential instruments to Trade: EUR Crosses. 

  • All-Day – OPEC Meetings

Potential instruments to Trade: All Crosses. 

  • 15.30 – US – CPI m/m & Core CPI m/m

Potential instruments to Trade: USD Crosses. 

Thursday 12th May

  • 06.00 – New Zealand – Inflation Expectations q/q

Potential instruments to Trade: NZD Crosses. 

  • 09.00 – UK – Prelim GDP q/q

Potential instruments to Trade: GBP Crosses. 

  • 15.30 – US – PPI m/m, Core PPI m/m, & Unemployment Claims

Potential instruments to Trade: USD Crosses. 

Friday 13th May

  • 17.00 – US – Prelim UoM Consumer Sentiment

Potential instruments to Trade: USD Crosses. 

  • 19.00 – US – FOMC Member Mester Speaks

Potential instruments to Trade: USD Crosses. 

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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.50% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read our Risk Disclosure.

Get started for free

Create Account
×

Search