5 economic events you don't want to miss

Economic calendar summary

Inflation data releases from Canada, the Euro Area, and Japan could sway forex markets in the same way last week's inflation rate from the US shifted US dollars - lower inflation has led to currency weakness while greater inflation has led to strength. The Euro Area inflation rate could be of particular note given EUR/USD's recent volatility around 1.1000.

Fed Chair Powell's speech at the end of the week will likely be watched closely by many USD forex pairs traders as Powell could help to clarify the future path of interest rates in the United States.

Check out the entire economic calendar

Employment Change - UK

Time: 2:00am ET Tuesday, May 16th

Previous: 169k

Expected: 160k

With inflation remaining relatively high in the UK, British pound traders could see a higher-than-expected employment change as reason for higher inflation and potential GBP appreciation; while, on the flip side, a lower reading could result in GBP falling. GBP /USD is currently trading around year-to-date highs near 1.2500.

Practice trading economic events using a demo account

Inflation Rate - Canada

Time: 8:30am ET Tuesday, May 16th

Previous: 4.3%

Expected: 4.1%

Canadian data has not been helpful in lifting the Canadian dollar recently as USD/CAD still trades near highs of 1.3600. The fact that Canadian inflation is already lower than that of the US and is expected to fall further does not bring great optimism to CAD, but, that said, a higher-than-expected reading could lift this downtrodden currency.

Inflation Rate - Euro Area

Time: 5:00am ET Wednesday, May 17th

Previous: 5.7%

Expected: 5.6%

Euro inflation is just slightly higher than that of the US, which could make this data release very interesting for EUR/USD as it still circles 1.1000. An inflation rate print closer to 5%, where the US is at, could result in EUR depreciation, while a number closer to 6% might mean EUR strength.

Inflation Rate - Japan

Time: 7:30pm ET Thursday, May 18th

Previous: 3.2%

Expected: N/A

Japanese inflation has remained lower than most other major regions, which has partially been the reason for lower interest rates from the Bank of Japan and lower exchange rates versus other regions. An uptick in inflation could translate to JPY strength, while even lower measures might mean further JPY weakness.

Fed Chair Powell Speech - US

Time: 11:00am ET Friday, May 19th

Previous: N/A

Expected: N/A

As many traders wonder whether or not the Fed will hike again in 2023, any signal from Fed Chair Powell one way or the other could move the US dollar around significantly. Major USD-based pairs like EUR/USD, GBP/USD, and USD/JPY could see a volatile end to the week around this speech.