Here are some of the important economic data that will be the focus of the market throughout this week.
UK Employment Data (Tuesday 2.00 PM): The average wage index in the UK is expected to record good growth, however the concern is on the forecast unemployment rate which is expected to rise to 4.0%.
US CPI data (Tuesday 8.30 PM): Being an important indicator of the central bank in setting monetary policy, the reading of the US consumer price index is observed to assess the current rate of inflation. The figures published will give an idea of the steps to be taken by the Federal Reserve (Fed).
UK GDP Data (Wednesday 2.00pm): UK economic growth for April is expected to improve to 0.2% compared to the previous month's 0.3% contraction.
US PPI data (Wednesday 8.30 PM): The US producer price index will also be watched by the market which gives an early picture of the inflation situation from producers which can affect inflation at the consumer level.
FOMC Meeting (Thursday 2.00 AM): The main event of the week, the results of the US central bank meeting will be the market mover. Expectations are for interest rates to be kept at 5.25%, but it is not impossible that the Fed will act similarly to the shocks by the Australian and Canadian central banks last week.
Australian Jobs Data (Thursday 9.30am): After Australia's central bank (RBA) surprised the market by raising interest rates last week, the country's employment sector will be assessed. A strong employment data reading could support the RBA to continue policy tightening.
ECB Policy Meeting (Thursday 8.15 PM): The European central bank (ECB) is expected to increase interest rates by 25 basis points to 4.00% at the June meeting. The Euro currency is likely to rise on the initial reaction.
BOJ Policy Meeting (Friday): The central bank of Japan (BOJ) is still expected to keep interest rates unchanged at -0.10% after several months of taking over the governorship by Kazuo Ueda. Markets will assess his follow-up remarks for further policy-setting insights.
