Packed Global Central Bank Agenda On Tap; U.S. Dollar Could Hit New High

We offer our weekly macro and technical commentary below ahead of tomorrow’s publication of Bannockburn’s May monthly outlook.

The week ahead is packed with several central bank meetings and important high-frequency economic data. The week begins with China’s April over the weekend. The world’s second-largest economy is being hit by the lockdowns as part of the policy response to the outbreak of COVID. However, the economic impact seems somewhat milder than when the pandemic first arose in Q1 20, and the economy shrank by 10.3% quarter-over-quarter. Still, more stimulus measures from Beijing and the PBOC seem likely. 

The Reserve Bank of Australia on May 3. The market’s perception of the likelihood of a hike increased markedly after last week’s stronger than expected Q1 . It rose to 5.1% year-over-year from 3.5% in Q4 21 and was above the 4.6% median (Bloomberg survey) forecast. The underlying measures quickened to above 3% and more than expected….

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