5 Economic Events You Don't Want to Miss

This week is expected to be a busy one for forex traders with interest rate decision coming from Australia, the Eurozone, and the US. While it appears as though most central banks are slowing down their interest rate hikes, relative strength in any of these regions could result in their currency's appreciation. Not only will the decisions be monitored, but traders will also tune in to the press conferences for an idea of the future of interest rates

Also, the US is reporting its monthly Nonfarm Payrolls on Friday, and the number is expected to come in lower than last month's; a higher-than-expected number could signal further inflation fears, and the opposite goes for a lower-than-expected reading.

Check out the entire economic calendar

Interest Rate Decision - Australia

Time: 12:30am ET Tuesday, May 2nd

Previous: 3.6%

Australia kicks off a busy week of interest rate decisions from major central banks with what is expected to be no change to their rate that's currently 3.6% - more than 1% lower than US rates. Australian dollar has been one of the only major currencies to depreciate against the US dollar in 2023 - AUD/USD fell to 0.66 last week. Talk of hawkish action from the Reserve Bank of Australia could lift Aussie while dovish talk could send it lower.

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Inflation Rate - Eurozone

Time: 5:00am ET Tuesday, May 2nd

Previous: 5.7%

While inflation has been on the descent for most major economies including the Euro Area, Eurozone inflation has held in higher than that of the US giving strength to EUR over USD. A surpisingly high inflation reading - greater than 6% - could bring EUR/USD higher while a lower reading - less than 5% - could send EUR/USD lower.

Interest Rate Decision - US

Time: 2:00pm ET Wednesday, May 3rd

Previous: 5.0%

The Federal Reserve is expected to raise interest rates 25 bps to 5.25% at Wednesday's meeting, which could give strength to a US dollar that's been struggling against the euro and British pound in recent weeks. The Fed's press conference to follow the decision will also be digested by markets as traders attempt to decipher the future path of interest rates and what it could mean for USD.

Interest Rate Decision - Eurozone

Time: 8:15am ET Thursday, May 4th

Previous: 3.5%

The European Central Bank is expected to follow the Fed with a matching 25 bps hike bringing its interest rate up to 3.75% - still more than 1% lower than that of the US. The euro, however, has gained momentum against the US dollar in recent weeks as EUR/USD trade comfortably above 1.10 last week. Traders are currently thinking the Euro Area's future path of interest rates might be stronger than that of the US, and they'll likely look to this event to either confirm or refute such a trend.

Nonfarm Payrolls - US

Time: 8:30am ET Friday, May 5th

Previous: 236k

US Nonfarm Payrolls are expected to continue the trend lower at 180k versus the April reading of 236k. NFP has become something of an inflation measure in recent years, where a low reading might translate to low inflation and vice versa. Given that inflation has been correlated to interest rates and currency strength, a lower reading could result in US dollar weakness while a higher reading could bring USD strength.