The pound
On Tuesday, the BRC Retail Sales Monitor will impact buyer demand for the British pound. Upward trends in the Retail Sales Monitor would signal improving consumer spending trends.
However, house price figures should also be taken into account on Tuesday. An improving real estate environment could increase consumer confidence and spending trends. The BoE could moderate investor expectations for a cut in interest rates to curb consumption.
Although these figures will attract interest, the Bank of England’s monetary policy decision will be crucial. On Thursday May 9, economists expect the BoE to leave interest rates at 5.25%. The vote count, the MPC meeting minutes and the speech from Bank of England Governor Andrew Bailey will shake things up.
Friday 10 May will focus on UK GDP, trade, production figures and trade data. GDP and production figures will likely have a greater impact on BoE rate movements.
With the Bank of England in focus, investors should follow the Bank of England’s comments. Listening in are BoE chief economist Huw Pill (Thursday/Friday) and Monetary Policy Committee member Sawati Dhingra. calendar talk.
The loon
Ivey’s PMI numbers for April could impact buyer demand for the loonie on Tuesday, May 7.
However, on Friday May 10, Canadian labor market data for April will catch investors’ attention. Weaker labor market conditions could impact wages and consumer confidence. The Bank of Canada could respond to weak labor market data by discussing interest rate cuts to ensure price stability.
The Australian dollar
Australian retail sales figures for March will attract investor interest on Tuesday (May 7). Upward revisions to preliminary figures could influence the path of RBA rates and the Australian dollar.
However, the RBA’s interest rate decision will be the focus of investors’ minds. Higher-than-expected consumer and producer price inflation figures have fueled speculation about an RBA rate hike. Markets expect the RBA to leave the cash rate at 5.35%. However, the RBA press conference will attract investor interest.
Other statistics include building approvals. However, these will likely play second fiddle to the RBA.
The kiwi dollar
On Friday May 10, New Zealand business PMI figures for April will need to be considered. Weaker than expected figures could increase bets on an RBNZ rate cut. However, investors need to consider the subcomponents to know the trends.
The Japanese yen
Japan’s services sector PMI figures will put the Japanese yen in focus on Tuesday. The Bank of Japan hopes that a recovery in services employment, new orders and prices could lead to inflationary pressures. An upward revision of the preliminary figures could influence buyers’ appetite for the yen. However, investors should consider the subcomponents.
Friday May 10, Japanese household spending figures will also attract the attention of investors. An unexpected increase in household spending could fuel investors’ bets on an interest rate hike from the Bank of Japan.
Beyond the numbers, investors should monitor comments from the Bank of Japan. Forward-looking guidance on…
