Week Ahead – US and UK data to lead quiet week as dollar can’t make up its mind
XM Group | May 07, 2021 09:56AM ET
Inflation and retail sales to be eyed in America
US data suggests it’s only a matter of time before the Fed finds itself in a spot where it can no longer justify its colossal monthly pace of $120 billion in bond purchases. Next week’s indicators are likely to further raise question marks about the Fed’s ultra-dovish stance. The consumer price index is out on Wednesday and expectations are that the 12-month rate jumped by one percentage point to 3.6% in April. The increase in the core rate is anticipated to have been more moderate, from 1.6% to 2.6%.
China has just announced it is suspending an economic dialogue to deepen ties with Australia in retaliation to Canberra’s decision to ban Huawei from Australia’s 5G network and to call for an investigation into the origins of the coronavirus. After a knee-jerk dip, the aussie bounced back from the headlines but any follow-up measures from Beijing could have a bigger impact.
In China, another jump in the producer price index in April could fuel fears of higher inflation on Tuesday and in New Zealand, electronic card retail sales for April will be watched on Wednesday for a further rebound in consumption after a sluggish start so far to 2021.
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