US CPI, ECB ahead
The consumer price index is expected to remain well above the US Federal Reserve target. For March, economists anticipate headline CPI at 3.4% YoY, higher than the 3.2% in February.
The dollar
The USD was relatively stable on Monday. The dollar basket briefly jumped on Friday at the release of March non-farm payrolls before paring its gains. Investors now look ahead to US inflation data on Wednesday. The consumer price index is expected to remain well above the US Federal Reserve target. For March, economists anticipate headline consumer price index (CPI) at 3.4% year-over-year (YoY), higher than the 3.2% in February. An increase is partly due to the recent rise in energy prices. If we take out volatile food prices and energy, CPI growth is forecast to decelerate to 3.7% from 3.8% the previous month.
Reserve Bank of New Zealand
The currency market is also likely to react to the few announcements from central banks scheduled this week, starting on Wednesday with the Reserve Bank of New Zealand (RBNZ) interest rate decision. It is expected to maintain its official cash rate at 5.5%, extending the rate pause for a sixth straight month. Also on Wednesday, the Bank of China (BOC) interest rate decision should keep its borrowing costs at a 22-year high.
European Central Bank
Despite inflation falling in the eurozone, the European Central Bank (ECB)'s main refinancing rate is forecast to remain at 4.5% on Thursday. No change is expected either for the deposit facility rate or the marginal lending rate. A recent Reuters poll showed that about 90% of economists surveyed expect the first ECB interest rate cut at the bank's meeting on June 6. By then, ECB members would have taken note of fresh wage data due in May.
Tesco
On the UK corporate front, Tesco is due to report its full-year earnings on Wednesday. This should be an upbeat report, as the supermarket chain raised its full-year guidance twice during the last six months. The group currently expects an underlying operating profit of £2.75 billion.
Delta Air Lines
Over in the US, this week marks the start of a new earnings season. According to Factset, S&P 500 earnings could increase by 3.1% year-over-year (YoY) and revenue by 3.5%. On Wednesday, Delta Air Lines will post its earnings for the first quarter. Earnings season will really start on Friday with reports from JPMorgan, Citigroup, and Wells Fargo. All these are all-session stocks on the IG platform.
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