Economic Calendar Of The Week – May 16-20, 2016

Economic Calendar Of The Week – May 16-20, 2016


Welcome to the Investors Trading Academy economic
calendar of the week. Each week our news analysts review the upcoming economic events that you
should be monitoring. The US dollar had another positive week, enjoying
some good data. UK and US inflation data, housing figures and most importantly the FOMC
Meeting Minutes stand out. These are the highlights of this week. Join us as we explore the market
movers on Forex calendar. US jobless claims posted a higher than expected
reading of 294,000. The 20,000 addition reached the highest level since February 2015. However,
the positive trend that began early in May continued for the dollar, especially as retail
sales beat expectations, something that doesn’t usually happen. The fear of a Brexit, highlighted
by the BOE, is one possible reason to wait. This week’s crop of economic data manages
to strike a pleasing balance between volume and importance. Almost every day there is
enough of sufficient importance to warrant investor’s attention, without overwhelming
them in frequency. US data includes Fed minutes and CPI numbers,
with the former particularly interesting. If the doves on the FOMC were in the ascendancy
at the last meeting, then subsequent US data will only have emboldened them to keep on
warning about the dangers of higher rates. U.S. consumer prices barely moved in March
rising 0.1% showing little reason for interest rate hikes in the near future. The lukewarm
inflation figures do not reflect the ongoing improvement in the job market. The CPI declined
0.2% in February. CPI is forecasted to rise 0.4% while core prices are estimated to climb
0.2% this time. UK data also comes into focus, including CPI
numbers and employment figures; Brexit dominated last week, but with the UK economy still lackluster,
the focus will be on whether there is any improvement in underlying data. Employment
numbers will keep trader’s attention in the UK this week. The number of people receiving
jobless benefits increased by 6,700 in March, missing predictions for an 11,900 cut. The
jobless-claims rate remained at 2.1%. BOE said recruitment in April was nearly unchanged
showing muted employment growth. Meanwhile, U.K. unemployment edged up for the first time
in seven months and employers added fewer jobs than forecast, suggesting the labor market
is losing momentum. The number of people looking for work climbed by 21,000 to 1.7 million
in the three months through February. In light of these figures, the Bank of England is in
no hurry to raise interest rates anytime soon and the June 23 EU vote is starting to weigh
on UK economic growth. The amount of people receiving jobless benefits is expected to
rise by 4,100 in April. With no Federal Reserve meeting until late
June Fed speaker’s hawkish tones have helped the US dollar rally. This week all eyes will
focus on the Fed minutes. These are the meeting minutes from the April decision, in which
the Fed left policy unchanged, acknowledged some improvement but did provide any hike
hints. The chances for a rate hike in June dropped after that meeting but since then,
data has improved. So, this is an opportunity for the Fed to hint about raising rates in
June, if this is indeed the case, and it’s quite unclear that this a real option for
the doves that control the Fed. It is important to remember that the minutes are edited until
the last moment, allowing the Fed to sharpen any message.

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