Here is what you need to know on Friday, May 15:
The US dollar is consolidating its gains from earlier in the week, following the Federal Reserve's refusal to set negative rates and President Donald Trump's support for a strong dollar. Gold and oil are on the rise for different reasons. A packed day awaits readers, with US consumer data and German growth figures standing out.
Trump's support for a strong dollar added oomph to the greenback and his statement that the "era of globalization is over" also caused concerns, yet stocks eventually bounced back and the dollar's advance halted in its tracks. The president ramped up his rhetoric against Beijing by also saying that he refuses to speak to Xi Jinping, his Chinese counterpart.
Chinese data: The world's second-largest economy reported a better-than-expected increase in industrial output in April, vehicle retail sales disappointed with a sharp decline. Returning to factory work is easier than getting consumers to shop.
US Retail Sales figures for April are the highlight of the day. A drop of 12% is projected in the headline figure with substantial falls also in core figures.
US Retail Sales April Preview: As bad as can be but still expected
It is followed up by the University of Michigan's preliminary Consumer Sentiment Index for May, which is forecast to extend its decline.
See US Consumer Sentiment Preview: The triumph of hope over experience?
US Jobless Claims rose by nearly three million in the week ending May 8, worse than expected. The JOLTs job openings publication for March will provide another lagging, yet broad, view on the labor market.
More US stimulus? The White House rejected the Democrats' $3 trillion stimulus bill but remains open-minded to other measures and especially sending additional cheques to Americans. Additional government support is helping cheer markets. The Fed has been urging Washington to do more.
US coronavirus cases have topped 1.4 million and deaths are at around 86,000. The New York area's COVID-19 statistics continue declining while Texas recorded its biggest leap, two weeks after lifting stay-at-home orders. Global mortalities from the disease topped 300,000.
Eurozone: Economists expect the German economy to have shrunk by 2.2%, a more moderate scale than its peers in the eurozone. However, there are reasons to expect a sharper decline. Updated euro area statistics will also be released.
See German GDP Preview: Why expecting the worst since 2009 may be optimistic, EUR/USD implications
GBP/USD has stabilized after falling to the lowest in five weeks. An update on Brexit talks may come at the end of the week.
USD/JPY has been consolidating its gains. Tokyo's governor is set to publish a plan to ease the lockdown on the capital.
Gold remains bid after topping $1,730, amid prospects of more monetary and fiscal stimulus, as well as speculation. The multi-year peak of $1,747 is in sight.
Oil prices have extended their rally amid hopes for rising Chinese demand and due to further cuts by OPEC members. WTI oil is hovering at around $28.
Cryptocurrencies have failed to extend their rally, with Bitcoin consolidating around $9,500.
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EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
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Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
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