Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

<b> MARKET</b> ANALYSIS <b> MARKET</b> ANALYSIS

MARKET ANALYSIS

Cutting-Edge Market Commentary for Informed Strategy Making

WEEKLY

OUTLOOK


08.05.2023-12.05.2023





Good afternoon traders.

A quite fascinating week went by with traders focusing mainly on Central Banks and their decisions regarding interest rate hikes. Royal Bank of Australia was the first to announce on Tuesday its decision surprising the trading world with a 25 basis points (bps) hike. Market players widely anticipated that RBA would leave the rates unchanged. The next day FED took its turn, also hiking the interest rate by 25 basis points (bps) following the May policy meeting. This decision came in line with the market expectation. Lastly the European Central Bank (ECB) announced on Thursday that it raised its key rates by 25 basis points (bps). With this decision, the interest rate on the main refinancing operations increased to 3.75%.

Other important releases of the week were Eurozone’s CPI data which showed that inflation edged higher to 7% on a yearly basis in April from 6.9% in March and off course the release of the Non-Farm Employment Change which came in better than the market expectation at 253k.
Next week on a monetary level, we highlight BoE’s interest rate decision which market expectations show a 25-basis points rate hike. In the US the Bureau of Labor Statistics will release the Consumer Price Index (CPI) and Producer Price Index (PPI) data on Wednesday and Thursday respectively with both readings reflecting the inflation level.


Have a nice weekend ahead.




Monday 08 May

Time CEST

Cur.

Event

Forecast

Previous

02:30

JPY

Services PMI (Apr)

52.1

54.9

08:00

EUR

German Industrial Production (MoM) (Mar)

0.3%

2.0%

16:00

USD

CB Employment Trends Index (Apr)

108.32

116.24


Tuesday 09 May

Time CEST

Cur.

Event

Forecast

Previous

03:30

AUD

Retail Sales (MoM)

0.5%

0.2%

05:00

CNY

Trade Balance (Apr)

42.26B

88.19B

08:00

GBP

Halifax House Price Index (MoM) (Apr)

0.3%

0.8%


Wednesday 10 May

Time CEST

Cur.

Event

Forecast

Previous

08:00

EUR

German CPI (MoM) (Apr)

0.6%

0.4%

14:30

USD

CPI (MoM) (Apr)

0.2%

0.1%

20:00

USD

Federal Budget Balance (Apr)

-299.1B

-378.0B


Thursday 11 May

Time CEST

Cur.

Event

Forecast

Previous

03:30

CNY

CPI (MoM) (Apr)

0.0%

-0.3%

13:00

GBP

BoE Interest Rate Decision

4.50%

4.25%

14:30

USD

PPI (MoM) (Apr)

0.2%

-0.5%


Friday 12 May

Time CEST

Cur.

Event

Forecast

Previous

08:00

GBP

GDP (MoM) (Mar)

0.1%

0.0%

14:30

USD

Import/Export Price Index (MoM) (Apr)

-

-

16:00

USD

Michigan Consumer Sentiment (May)

63.0

63.5





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RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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