Summary:
- Norges Bank may offer more details on the timing of the next rate hike
- US PPI inflation seen decelerating to 0.2% MoM in April
- Fed and ECB members scheduled to speak today
Trade talks between China and the United States are likely to steal the show today but a few interesting readings can be found in the economic calendar as well. Norges Bank will announce interest rate decision in the morning while a streak of the second-tier US data will be released in the early afternoon. Several Fed and ECB members are scheduled to deliver speeches throughout the day, including Fed Chairman Powell. However, it should be noted that Powell will deliver an opening speech at Fed event and no Q&A session will take place afterwards therefore it is likely that no major market reaction will occur.
9:00 am BST - Norges Bank interest rate decision. Economy of Norway benefits from the rebound on the oil market and it could encourage Norges Bank to be more hawkish. During the latest meeting the Bank hinted that another rate hike will be delivered during the next six months. While no change in the level of interest rates is expected today, central bankers may provide some more guidance on the timing of the rate hike.
1:30 pm BST - Data from the United States. A bulk of semi-important data from the United States is set to be released in the early afternoon. PPI inflation for April is expected to decelerate from 0.6% MoM to 0.2% MoM. Trade balance data for March is forecasted to show a deficit of $50.2 billion. Last but not least, initial jobless claims for the week ended May 4 should show 220k. None of the aforementioned releases is a “market-mover” type therefore reaction may be minor. However, release of the trade balance data may be more closely watch due to the latest tensions between China and the United States.
Central bankers’ speeches scheduled for today:
- 8:00 am BST - ECB’s Hakkarainen
- 1:30 pm BST - Fed Chairman Powell
- 2:00 pm BST - ECB’s Lane
- 2:45 pm BST - Fed’s Bostic
- 6:15 pm BST - Fed’s Evans
Major US companies reporting earnings today:
- Booking Holdings (BKNG.US)
- Cardinal Health (CAH.US)
- Duke Energy (DUK.US)
- Kraft Heinz (KHC.US)
USDNOK has been trading within a range since the turn of the year. The pair moved significantly higher during the past two weeks and has found itself in the vicinity of the upper limit of the consolidation range. A more hawkish message from Norges Bank could help the pair remain in the range. Source: xStation5
