OANDA Senior Market Analyst Kelvin Wong joins Jonny Hart to discuss this week’s key economic data and events. Firstly, two central banks’ monetary policy to ponder on ex-post “not so hawkish” FOMC last week engineered by Fed Chair Powell’s press conference. In the Asia pacific region, we will have RBA meeting on Tuesday (7 May) where the interest rates swaps market has priced in an increasing chance of a interest rate hike in Australia before 2024 ends due to a hotter Q1 CPI data print. Hence, market participants will be on the lookout for any revival of hawkish vibes peppered in the latest RBA’s monetary policy statement (no chance a rate hike on Tuesday as per consensus thinking).

Secondly, after a surprise dovish tilt by BOE in March, the street on the look out for more evidence of the doves having a foothold within BOE’s MPC during this Thursday, 9 May monetary policy meeting, no change is being expected on the bank policy rate at 5.25% but key focus will be on the latest BOE’s inflationary trend projection release on the same day. A slower pace of inflation projection of 2.2.5% to 2.00% in UK by the end of 2024 may trigger a revival in US dollar strength.

Lastly, the focus will shift to China with the release on its April’s trade data on Thursday (9 May) and inflationary trends (CPI and PPI) out on Saturday (11 May). Pivotal after April’s strong performance seen in the China and Hong Kong benchmark stock indices that outperformed against the rest of the world.

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