The US Retail Sales Update
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.
Bank of England Statement: What to Expect
What will happen?
The Bank of England will publish its Monetary Policy Report and Summary, Official Bank Rate, and its votes on May 5 at 14:00 MT. The report contains the inflation forecast and economic growth over the next two years. The head of the BoE will also hold a press conference to discuss the report’s contents after its release. It provides valuable insights into the bank’s views on economic conditions and inflation, which are key factors that will determine the future of monetary policy and influence interest rate decisions. This monthly releases has a direct impact on GBP.
Possible GBP movements
Lately, the Bank of England said it would consider selling the securities back to the market once the bank rate hits 1%. Now the interest rate is 0.75%. However, poor market liquidity and heightened volatility suggest that the committee is likely to hold off for now and wait for conditions to improve before jumping into active selling.
The geopolitical crisis impacts the UK immensely with high commodities prices and the consumer price inflation rate of 7%, the highest of the last 30 years. It increased the pressure on Prime Minister Boris Johnson and his finance minister, Rishi Sunak, to lower the cost-of-living level.
The previous release was on March 17. The BoE policy was rather dovish. Right after the release, the GBPUSD fell 1150 points.
How to trade on the UK Official Bank Rate release?
The higher the “Actual” rate relative to the “Forecast”, the better for the currency.
Financial analytics suppose that the Bank of England will raise interest rates to 1% from 0.75% on May 5 and then bring them to 2%-2.25% by the end of 2022. Although, many economists expect the rate to be less aggressive.
Samuel Tombs, chief economist at Pantheon Macroeconomics in the UK, forecasts inflation to reach 8.8% in April after utility bills skyrocket but then fall below the Bank of England's target of 2% in the second half of next year.
Check the Economic Calendar
Instruments to trade: GBPUSD, EURGBP, GBPCAD, GBPJPY.
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The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on May 6, at 15:30 MT time.
Australian Cash Rate Hot News
The Reserve Bank of Australia will make the cash rate statement on May 3, at 07:30 MT.
Latest news
Will New Zealand’s Central Bank Boost the NZD?
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
What’s New with Australian Unemployment Rate?
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
Can the UK CPI surprise?
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
