The market's attention will be directed towards US inflation data, especially in the wake of disappointing wages figures last Friday, and to see how these data affect the pace of rate hikes this year. Also, attention will be focused on a number of economic data and meetings of some central banks.
The following are the highlights of this week:
Wednesday - New Zealand interest rate decision
The Reserve Bank of New Zealand is set to announce its interest rate decision on expectations that it will remain unchanged at 1.75%. This will be followed by the first conference press for Adrian Orr, the new governor of RBNZ who will have an opportunity to shape market expectations. Orr will also testify before the Parliamentary Finance Committee on the monetary policy.
Thursday - US and Chinese inflation data / BoE meeting
US CPI figures will be closely watched by investors and their impact on Fed monetary policy and it is expected that core CPI to rise by 0.2% on monthly basis and by 1.9% on yearly basis in April.
Also, China's CPI figures are expected to rise by 2.4% in April from a 3.1% rise in March.
The Bank of England is due to announce its interest rate decision, and rates are expected to remain unchanged at 0.5% after markets had priced in hike at the May meeting by about a quarter basis point by 90%, but the mixed economic figures and Mark Carney's statements prevented it.
Friday - Canadian Employment Data
The Canadian employment data is expected to be announced. The labor market is strong in the Canadian economy. The economy is expected to add 36.1K jobs in April after adding 32.3K jobs in March while unemployment to stand at 5.8%.
