5 economic events you don't want to miss
At the start of every trading week, we comb the upcoming economic calendar for the highest-impact items in the world. Find out what’s coming up next.
Economic calendar summary
Inflation rates are coming from Germany, UK, US, and China as traders try to decide whether inflation is over, still high, or only high in some regions. Forex markets have historically followed the trend of higher inflation in a given region leading to higher interest rates and greater currency strength.
For example, a higher inflation reading in Germany versus that of the US could be interpretted as bullish for EUR/USD as it might lead to higher rates in the Euro Area than in the US and thus greater euro demand than dollars.
Inflation Rate - Germany
Time: 2:00am ET Wednesday, May 10th
Previous: 7.4%
Germany is the first of several major economies reporting inflation data this week, and the German data will be watched closely by euro currency traders. Inflation is expected to come in slightly lower than last month, but it's still projected to be higher than that of the US. A higher-than-expected number could mean EUR/USD strength, while a weaker result could mean the opposite.
Inflation Rate - US
Time: 8:30am ET Wednesday, May 10th
Previous: 5.0%
US inflation is expected to come in right at the same level as the last release - 5.0%. However, the recent larger-than-expected Nonfarm Payrolls number could correspond to a higher inflation data point than some are thinking. A higher number could result in US dollar strength among major forex pairs, while a lower reading could translate to weakness.
Inflation Rate - China
Time: 9:30pm ET Wednesday, May 10th
Previous: 0.7%
While Chinese inflation has been much lower than that of the US, UK, and Euro Area, any surprise outside of what's expected - less than 1.0% - could bring volatility to Chinese-based currency pairs as well as the highly correlated Australian dollar.
Interest Rate Decision - UK
Time: 7:00am ET Thursday, May 11th
Previous: 4.25%
The Bank of England is expected to raise interest rates by 25 basis points (bps) - as much as the US and Euro Area raised their rates last week. A 50bps hike could result in major British pound strength, whereas anything less than a 25bps hike might mean considerable weakness for GBP in its major forex pairs.
Producer Price Inflation (PPI) - US
Time: 8:30am ET Thursday, May 11th
Previous: -0.5%
Last month's PPI came as a great surprise as the inflation rate actually turned negative. The expectation in May is for a slightly positive reading but not by much. Another low PPI data point could mean lower interest rates and a weaker dollar for the US, but the number could be bullish if it does come in positive.
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