Fundamentals to Watch Out for This Week
This week is relatively risk heavy with data and events.
What to watch for over the coming days –
- UK inflation data and employment report - April inflation report, which includes, Retail price index, Consumer price index, Producer price index, House price index will be released on Tuesday. Employment report is due on Wednesday.
- U.S. inflation - FED is having extra focus on inflation, which makes Tuesday’s CPI extra impotent.
- Japan’s GDP – First quarter GDP reading is due on late Tuesday. Pressure to act will rise over BOJ, if economy dips into recession.
- Euro Zone inflation - Many of the new measures taken up by the ECB has kicked in, so market participants will be watching its impact in April inflation data, due on Wednesday, if any.
- There are lot more than regular economic data, which could influence markets big time.
- FED minutes – FOMC will release its minutes of meeting on Wednesday, which could provide insight over future rate hikes, especially how much concern FED will be about Brexit in its June meeting.
- G-7 meeting – Friday will mark the start of two day G-7 meeting in which Japanese Prime Minister Shinzo Abe is widely expected to raise the Yen issue to the leaders, excessive strengthening of it. This meeting could define whether BOJ will intervene or not.