Forecasting the Coming Week: Fedspeak and PCE remain in the spotlight


The improved sentiment in the Greenback came in line with hawkish FOMC Minutes and another set of positive results from US fundamentals, all reinforcing the Fed’s tighter-for-longer narrative ahead of key PCE data and more Fedspeak.

Despite Friday’s pullback, the US Dollar managed to reverse recent weakness and closed the week with decent gains. The FHFA’s House Price Index comes on May 28 seconded by the always-relevant Consumer Confidence gauged by the Conference Board. On May 29, MBA will report on weekly Mortgage Applications ahead of the Fed’s Beige Book. Another revision of the Q1 GDP Growth Rate is due on May 30, followed by the usual weekly Initial Jobless Claims, the advanced Goods Trade Balance and Pending Home Sales. Closing the month, the focus of attention will shift to inflation figures tracked by the PCE along with Personal Income and Spending.

EUR/USD extended its weekly decline and revisited the 1.0800 region, where it met some decent contention for the time being. Germany’s Business Climate tracked by the IFO institute is expected on May 27. Later in the week, Germany will be at the centre of the debate with the releases of the Consumer Confidence measured by GfK and the preliminary Inflation Rate, all due on May 29. The EMU’s final Consumer Confidence, Economic Sentiment, Industrial Sentiment and the Unemployment Rate are all expected on May 30, while German Retail Sales and the advanced Inflation Rate in the Euroland are due on May 31.

GBP/USD maintained its bullish perspective and advanced for the second week in a row, this time managing to break above the 1.2700 hurdle. In the UK calendar, the Nationwide Housing Prices, Mortgage Lending and Mortgage Approvals are all due on May 31.

USD/JPY kept the recovery well in place and regained the area beyond 157.00, around the 61.8% Fibo retracement of the steep decline following the suspected FX intervention by the MoF in late April. The final prints of the Coincident Index and the Leading Economic Index are due on May 27. Japan’s Consumer Confidence is due on May 29 ahead of weekly Foreign Bond Investment on May 30. At the end of the week come the Unemployment Rate, flash Industrial Production, Retail Sales and Housing Starts.

AUD/USD saw its recent strong rebound meet tough resistance just above 0.6700 the figure, coming under downside pressure afterwards. On May 28 comes the preliminary Retail Sales, while the Westpac Leading Index and the RBA’s Monthly CPI Indicator will be released on May 29. Preliminary Building Permits are due on May 30 seconded by Housing Credit on May 31.

Anticipating Economic Perspectives: Voices on the Horizon

  • BoJ’s Ueda and Fed’s Williams speak on May 27.
  • Fed’s Bowman, Mester, Kashkari, and Cook speak on May 28 along with SNB’s Jordan.
  • Fed’s Williams speaks on May 29.
  • Fed’s Bostic and Williams speak on May 30 along with SNB’s Jordan, BoE’s Bailey and RBA’s Hunter.
  • Fed’s Bostic speaks on June 1.

Central Banks: Upcoming Meetings to Shape Monetary Policies

  • The SARB is expected to keep its rate unchanged at 8.25% on May 30.
Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD trades sideways below 0.6700, as US Dollar stalls decline

AUD/USD trades sideways below 0.6700, as US Dollar stalls decline

AUD/USD has reversed early gains to trade flat below 0.6700 in Asian trading on Thursday. The pair loses upside traction, as the US Dollar attempts a tepid recovery amid a cautious market mood and PBOC's status-quo. The focus shifts to mid-tier US data and Fedspeak. 

AUD/USD News

USD/JPY defends 158.00 as markets turn risk averse

USD/JPY defends 158.00 as markets turn risk averse

USD/JPY is defending the 158.00 level in the Asian trading hours on Thursday, lacking a clear directional impetus, as investors look for fresh cues on the Fed’s rate-cut timeframe. A risk-averse market environment helps curb the US Dollar downside, lending support to the pair. 

USD/JPY News

Gold price holds near weekly high as US Dollar stabilizes ahead of data

Gold price holds near weekly high as US Dollar stabilizes ahead of data

Gold price resumes upside on Thursday amid September Fed rate-cut bets. Geopolitical risks and political uncertainty in Europe also lend support to the XAU/USD. Stabilizing US Dollar alongside the US bond yields rebound keep Gold price below the 50-day SMA. 

Gold News

Bitcoin price continues to plummet as whale activities deepen

Bitcoin price continues to plummet as whale activities deepen

Bitcoin's price fell below $65,000 on Wednesday following Increased whale activities that may be sell orders. Meanwhile, hedge funds have experienced a drag in their Bitcoin exposure, which may be fueled by consistent outflows among Bitcoin ETFs.

Read more

Will the BoE signal that rate cuts are looming?

Will the BoE signal that rate cuts are looming?

At its latest gathering, the Bank of England appeared dovish enough to encourage market participants to assign a decent chance for a first quarter-point rate cut in June, but that didn’t last for long as the hotter-than-expected inflation data for April prompted investors to take their summer rate cut bets off the table.

Read more

Forex MAJORS

Cryptocurrencies

Signatures