At the start of every trading week, we comb the upcoming economic calendar for the highest-impact items in the world. Find out what’s coming up next.
Last week, the US reported lower-than-expected inflation causing bearish price action to the US dollar. This week will find formative inflation readings from Canada, UK, Eurozone, and Japan, and the major question seems to be whether global inflation is tracking with the US or remaining higher.
GDP Growth Rate - China
Time: 10:00pm ET Monday, April 17th
China’s Gross Domestic Product (GDP) reading is expected to come in higher than previous at 4.0%. Growth to China’s GDP could bring a lift to the overall stock market as well as China’s and neighboring territories’ currencies; an underwhelming number could start the week on a more bearish tone for such markets.
Inflation Rate - Canada
Time: 08:30am ET Tuesday, April 18th
Canadian inflation, like that of the US, has been trending lower since last year’s peak levels above 6.0%. This decline has caused Bank of Canada members to speak less aggressively on the future path of interest rates, which has resulted in Canadian dollar softness. A higher number could reengage the central bank and reinvigorate the CAD, while a lower number could continue the recent trend.
Inflation Rate - UK
Time: 02:00am ET Wednesday, April 19th
UK inflation has actually held higher than most causing the Bank of England to hike interest rates relatively high. This has been part of the recent story of British pound strength versus the US dollar as GBP/USD now trades back near 1.25. Higher inflation calling for higher rates could mean an even stronger pound, while vice versa might knock GBP down from these recent highs.
Inflation Rate - Eurozone
Time: 05:00am ET Wednesday, April 19th
Euro area inflation has moved more-or-less in tandem with inflation in the US, but it has been slightly higher. The expectation is more than a full percentage point lower than the previous reading. Anything below 7% could be viewed as dovish for future euro interest rates, while inflation above 8% might be seen as hawkish.
Inflation Rate - Japan
Time: 07:30pm ET Thursday, April 20th
Japan concludes a busy week of inflation data releases with their own, which is expected to be a fraction of other major economies’. Japan has seemed to lag the US, UK, and Eurozone in most economic categories in recent years, taking its toll on the Japanese yen. Higher inflation readings could finally call for the Bank of Japan to take interest rates out of negative territory, but a lower reading might mean more of the same.
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