Week's main events (April 18

Last week, investors focused mainly on the US Consumer Price Index. Сonsumer inflation in the US rose to 8.5% year on year, the highest level since 1981. Investors now expect the Fed to be more aggressive with monetary policy. The probability of a 0.5% interest rate hike increased to 80% at the Fed meetings in May and June. Meanwhile, some Fed officials are already calling for a balance sheet reduction after the May meeting. Investors should focus on inflation data in Canada and New Zealand this week. Rising inflation is always a reason for the central bank to tighten monetary policy, so high inflation is often accompanied by rising national currency. Fed Chairman Jerome Powell will address the International Monetary Fund on Thursday. He will participate in a panel discussion on the global economy with European Central Bank President Christine Lagarde and other central bank policymakers. Several Dow Jones blue chips are due to report within the next week. Traders should also monitor the oil market. The ongoing war in Ukraine is already forcing European countries to think about a complete oil embargo on Russian energy resources, which will undoubtedly slow down the region's economy and cause recessionary sentiment.

Monday, April 18

Most countries will have a bank holiday on Monday because of Easter. Therefore, volatility in the first half of the day will be close to zero. Investors should pay attention to the GDP data in China and the speech of the Governor of the Reserve Bank of New Zealand.

Main events of the day:

– China GDP (q/q) at 05:00 (GMT+3);
– China Industrial Production (y/y) at 05:00 (GMT+3);
– China Unemployment Rate (m/m) at 05:00 (GMT+3);
– US FOMC Member Bullard Speaks at 23:00 (GMT+3);
– New Zealand RBNZ Gov Orr Speaks at 23:00 (GMT+3).

Tuesday, April 19

The Reserve Bank of Australia will update its monetary policy statement. Australia is on the verge of tightening monetary policy amid rising global inflation, so it is important to monitor this data. Traders' should also pay attention to the SNB head's speech, as Switzerland is considering an interest rate hike for the first time in a long time.

Main events of the day:

– Australia RBA Meeting Minutes (m/m) at 04:30 (GMT+3);
– Japan Industrial Production (m/m) at 07:30 (GMT+3);
– US Building Permits (m/m) at 15:30 (GMT+3);
– Switzerland SNB Chairman Thomas Jordan Speaks at 19:30 (GMT+3).

Wednesday, April 20

On Wednesday, the main events will be the Consumer Price Index in Canada and the interest rate in China. Analysts predict that the interest rate in China will remain unchanged. In Canada, on the other hand, annual inflation is projected to accelerate by another 1%. It is also worth keeping a close eye on the news about Crude Oil Reserves and the level of industrial production in Europe.

Main events of the day:

– China Loan Prime Rate (m/m) at 04:15 (GMT+3);
– German Producer Price Index (m/m) at 09:00 (GMT+3);
– Eurozone Industrial Production (m/m) at 12:00 (GMT+3);
– Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
– US Existing Home Sales (m/m) at 17:00 (GMT+3);
– US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

Thursday, April 21

The Eurozone will release final inflation data for March on Thursday, which is expected to confirm that consumer prices have jumped to 7.5% percent year on year, the fastest increase on record. Also, on this day, there will be speeches by the heads of the central banks of the United States, Britain, and Europe.

Main events of the day:

– New Zealand Consumer Price Index (q/q) at 01:45 (GMT+3);
– Australia Retail Sales (m/m) at 04:30 (GMT+3);
– Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– US Philadelphia Fed Manufacturing Index (m/m) at 15:30 (GMT+3);
– US Natural Gas Storage (w/w) at 17:30 (GMT+3);
– UK BoE Gov Bailey Speaks at 19:30 (GMT+3);
– Eurozone ECB President Lagarde Speaks at 20:00 (GMT+3);
– US Fed Chair Powell Speaks at 20:00 (GMT+3).

Friday, April 22

Various statistics are expected for many countries on Friday. The most important release for investors on Friday will be the inflation rate data in Japan. Analysts expect a slight increase in consumer inflation. The volatility of currency pairs with the Japanese yen will increase. Traders will also look for clues in the speeches of central banks officials.

Main events of the day:

– Australia Manufacturing PMI (m/m) at 02:00 (GMT+3);
– Japan National Core Consumer Price Index at 02:30 (GMT+3);
– UK Retail Sales (m/m) at 09:00 (GMT+3);
– German Manufacturing PMI (m/m) at 10:30 (GMT+3);
– Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
– UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
– Canada Retail Sales (m/m) at 15:30 (GMT+3);
– Eurozone ECB President Lagarde Speaks at 16:00 (GMT+3);
– US Manufacturing PMI (m/m) at 16:45 (GMT+3);
– UK BoE Gov Bailey Speaks at 17:30 (GMT+3).

by JustMarkets, 2022.04.18

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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