A Week in the Market: Strong Dollar and New Statistics (16–20 May)
This new exchange market week will be full of statistics. Investors will keep analysing global economies and geopolitics. There are still too many emotions in quotes.
China: new info will create moods
China is going to publish a large block of statistics, including retail sales reports and unemployment levels, industrial production and investments in fixed assets.
The reporting period is March, which was a quarantine month is China. Hence, statistics might turn out to be weak and throw a shadow over the currencies of developing countries.
GBP: stress might increase
Great Britain is preparing employment market statistics for March-April and a whole block of price statistics for April. The reports are likely to confirm that British economy is stressed. If so, pressure on the GBP might increase.
EUR: hoping to stabilise
The Euro zone is presenting its final statistics of April inflation, and there is unlikely to be anything new there. Previously, it became known that the CPI past month had grown to 7.5% y/y, which is very high for EU.
Also, the minutes of the past ECB meeting are worth taking look at. Any hints on toughening the monetary policy can stabilise the EUR.
The American dollar enjoys demand as a safe haven asset among those investors who flee from risks. However, the US domestic statistics look somewhat mixed. This week, investors will keep an eye on the retail sales report for April alongside industrial production parameters. A speech delivered by the head of the Fed Jerome Powell can provoke increased volatility in EUR/USD.
Australia will present the leading indicator index for March and labour market parameters for April. Also, check out the minutes of the previous meeting of the Reserve bank of Australia. The document might contain hints on further financial decisions. For now, the AUD looks weak but there are chances for consolidation in a range.