The Week Ahead: 24th - 28th April 2023

The Week Ahead: 24th – 28th April 2023

Overview for the Week Ahead

U.S. data will shed more light on the future path of interest rates. European bank earnings will show the impact from last month’s banking crisis, Eurozone data will inform the ECB’s decision making and the new BOJ governor chairs his first policy meeting.‪

Investors are trying to gauge whether the Federal Reserve will keep hiking rates to fight inflation after a widely anticipated 25 basis point hike at its May policy meeting. Many expect the central bank to cut rates later this year to loosen the grip of higher borrowing costs on the economy.

Thursday’s figures on first quarter GDP along with the Fed’s favoured measure of inflation, the core PCE price index and the employment cost index, both due out on Friday, will be closely watched.

GDP data is expected to point to solid growth, with consumer spending remaining strong. While the headline PCE price index is expected to fall the core reading is forecast to remain elevated. The employment cost index is also expected to tick higher, consistent with still sticky inflation.

The ECB is expected to raise interest rates for a seventh straight meeting at its upcoming May meeting, with most analysts expecting a 25-basis point hike, although a larger increase has not been ruled out.

New Bank of Japan Governor Kazuo Ueda chairs his first policy meeting on Friday and while analysts are not expecting any changes to the central bank’s ultra-dovish monetary policy they are on the alert for any potential surprises.

With all these reports and more, have your trading charts ready!

This Week’s High Impact Events

The times below are GMT +3.

Monday 24^th April

No High Impact Events

Tuesday 25^th April

17.00 – US – CB Consumer Sentiment, New Home Sales, Richmond Manufacturing Index

Potential instruments to Trade: USD Crosses.

Wednesday 26^th April

04.30 – Australia – CPI q/q, CPI y/y, Trimmed Mean CPI q/q

Potential instruments to Trade: AUD Crosses.

15.30 – US – Core Durable Goods Orders m/m, Durable Goods Orders m/m

Potential instruments to Trade: USD Crosses.

Thursday 27^th April

15.30 – US – Advanced GDP q/q, Unemployment Claims

Potential instruments to Trade: USD Crosses.

Friday 28^th April

Japan – BoJ Outlook Report, Monetary Policy Statement, BoJ Press Conference

Potential instruments to Trade: JPY Crosses.

All-Day – Europe – German Prelim CPI m/m

Potential instruments to Trade: EUR Crosses.

15.30 – Canada – GDP m/m

Potential instruments to Trade: CAD Crosses.

15.30 – US – Core PCE Price Index m/m, Employment Cost Index q/q

Potential instruments to Trade: USD Crosses.

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