The upcoming week in the market may start relatively calm as US traders are on holiday, but things may become more interesting later in the week. Traders will be offered jobs data from the United States as well as CPI figures from the euro area. Apart from that, debt ceiling developments in the United States will also be watched closely. Be sure to watch US500, GOLD and EURUSD in the week ahead!
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Liquidity on the markets on Monday may be lower as US traders will be off to observe Memorial Day. However, a number of top-tier US reports will be released this week that may help move US equity markets. Investors will be offered ADP and NFP jobs reports for May on Thursday and Friday, respectively. Conference Board consumer confidence index for May will be released on Tuesday while manufacturing ISM for May will see daylight on Thursday. Nevertheless, traders should also pay attention to debt ceiling developments as it could also be an important market mover.
The US debt ceiling is one of the main themes on the markets right now. X date is approaching quickly with US Treasury Secretary Yellen warning that failure to reach a deal by June 1, 2023 could risk US default. Uncertainty over whether the deal will be reached or not led to a spike in US yields, which supported USD and pressured precious metals, including gold. GOLD pulled back to $1,950 area but a breakthrough in debt ceiling negotiations could see precious metal reverse at least a part of recent drop.
A number of top-tier US macro reports scheduled for Monday will also impact EURUSD. However, the main currency pair will also get a chance to move during flash CPI releases for May from the euro area. While German CPI print on Wednesday, 1:00 pm BST will be the most closely watched, traders should also pay attention to Spanish release on Tuesday, 8:00 am BST as this is the first reading from major European economies and often serves as a hint for the rest.