FX Week Ahead - Top 5 Events: Chinese, German, US Inflation Rates; Banxico Rate Decision; US Retail Sales
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FX Week Ahead Overview:
The second week of May sees a global focus in the first half and a North American focus in the second half.
US economic data due in the second half of the week doesn’t appear that it will change the hearts and minds of traders after the disappointing April US jobs report.
Overall, recent changes in retail trader positioning suggest that the US Dollar has a mixed bias.
05/11 TUESDAY | 01:30 GMT | CNY Inflation Rate (APR)
With respect to any inflation figures anywhere, it’s been widely anticipated that a significant base effect would be making its way through data series over the coming months. China is not excluded from this expectation. Accordingly, the People’s Bank of China may thus look through any spike in the inflation figures that would, in an otherwise normal environment, suggest that a reduction in monetary support might
FX Week Ahead - Top 5 Events: China, Mexico, & US Inflation Data; Fed Speeches; UK GDP
FX Week Ahead Overview:
Price pressures are in focus for market participants with inflation data from Mexico (Tuesday), China (Wednesday), and US (Wednesday).
Focus returns back to the US Dollar in the coming days, with the US fiscal stimulus talks ongoing and Fed Chair Jerome Powell set to deliver a speech
Changes in retail trader positioning suggest that most USD-pairs are on mixed footing.
02/09 TUESDAY | 12:00 GMT | MXN Inflation Rate (JAN)
On Tuesday, the January Mexican inflation rate (CPI) is expected to show an uptick from +3.15% to +3.46% (y/y). Higher inflation may help cool some of the dovish talk at the margins around Banxico in recent months, which in turn could help the Peso continue last week’s run of strength. Recall that at the end of 2020, Mexican President Andres Manual Lopez Obrador nominated Galia Borja Gomez, the Treasurer of the Mexican Finance Ministry, to join Banx