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Current week review 08.05 – 12.05

 
     This week, market participants should pay attention to the statements of representatives of the Federal Reserve, whose speeches will be every day, and can provide some support for the US currency. In the coming days statistics also will be enough, but most interesting await us in the second half.
 
China’s Consumer Price Index
 
     On Wednesday, will be published inflation data in China. According to forecasts, expected slight improvement of indexes, this will support not only the Chinese Yuan, and also the currencies of the Pacific region, particular the Australian dollar, as Australia is one of the main trading partner of China.
 
Rate Statement of the Reserve Bank of New Zealand
 
     On Wednesday night, RBNZ will announce its decision on further monetary policy. Since the last meeting of the New Zealand regulator, the situation in the economy has improved. Inflation is growing, as are consumer spending, dairy auction shows positive dynamics. In this regard, we can expect positive forecast from RBNZ, which will support the New Zealand dollar.
 
Meeting of the Bank of England
 
     The most significant event of the week can be called the meeting of the Bank of England. The British regulator faces a difficult task to estimate the economic situation in the country. On the one side, the low exchange rate of Pound sterling has led to improvement in a number of economic indicators, but the process of exit the United Kingdom from the EU retains risks to the economy. Therefore, it will be very interesting what the Bank of England will pay attention, and what will be the forecast.
 
GDP of Germany
 
     Is it expected that the gross product of the locomotive of the European Union economy will show an essential growth in the first quarter. GDP growth in Germany will allow the euro much more strengthen its positions against other currencies.
 
US Consumer Price Index
 
     Block of data from the States will finish the week. The growth of Retail Sales and a positive report on inflation in the US can stop the decline of the US dollar and return it to growth.