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FOMC statement the highlight for next week
The highlight next week will the Federal Open Market Committee’s statement on monetary policy. This will be on Wednesday.
Monday will start of quietly, with no tier one data on the docket. In the US session the flash services PMI report might be worth looking at.
On Tuesday, Reserve Bank of Australia Governor Stevens will be speaking at the Australian Financial Review Banking & Wealth Summit in Sydney. It’s always good to listen to what a central bank chief has to say.
In the European session, the United Kingdom will release preliminary numbers for Gross Domestic Product for the first quarter. This will be important to take note of as it will likely have a large impact on the pound. Later in the US session, the Conference Board will release its latest report on consumer confidence in the US.
On Wednesday, New Zealand releases trade balance data. Japan will be on holiday so trade volumes will be light in the region, as Tokyo is a major market.
In the European session, German Preliminary CPI data are due. This will be important to watch since Germany is Europe’s largest economy.
All eyes will be on the US session. The first quarter GDP will be released. This will be the advance release and since it is the earliest release it to have the most impact. Following from this we will have the key risk event – the FOMC statement. Investors will be eager to get more insight into the Fed’s timing of the first rate hike. Due to some recent weak US data, some have pushed back expectations from June to September.
On Thursday, focus will be on New Zealand as its central bank will make an interest rate announcement. Most forecast are for rates to remain at 3.5 percent. Another important central bank monetary policy announcement will come from the Bank of Japan. The BoJ press conference will be important to watch.
Eurozone inflation data will be released at 09:00 GMT on Thursday. This will be a flash estimate and so the data will likely have some impact on the euro. Later in the day, Canadian GDP and US jobless claims are due.
On Friday, Japan will be publishing CPI data as well as other data on household spending, unemployment and final manufacturing PMI. China will also be releasing PMI data for both the manufacturing and service sectors. Then the UK will release manufacturing PMI, while the US releases the ISM and Markit manufacturing PMI report.
It will be worth noting that many markets will be closed on Friday due to the May 1st Labour Day holiday.
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