It’s gonna be one other busy week within the foreign exchange market, because the financial calendar is crammed to the brim with top-tier occasions.

Not solely do now we have PMI readings from main economies, however we’ve additionally acquired the RBNZ assertion, FOMC minutes, and U.S. core PCE worth index. Phew!

Earlier than all that, ICYMI, I’ve written a fast recap of the market themes that pushed forex pairs round final week. Verify it!

And now for the closely-watched financial indicators on the financial calendar this week:

World PMI readings

The market motion is sure to choose up beginning on Tuesday, Might 23 7:15 am GMT when France will get the ball rolling with its flash manufacturing and companies PMIs for the month of Might.

Combined outcomes are anticipated, as the previous is slated to enhance from 45.6 to 46.1, indicating a slower tempo of contraction, whereas the latter may dip from 54.6 to 54.0.

Germany is lined up subsequent, with the Might flash manufacturing PMI anticipated to tick greater from 44.5 to 44.9 and the flash companies PMI to fall from 56.0 to 55.0, reflecting a slowdown in trade progress.

After that, the U.Okay. is scheduled to report its PMI readings by 8:30 am GMT. A small uptick from 47.8 to 47.9 is predicted for the manufacturing sector whereas the companies trade may present a dip from 55.9 to 55.5.

Lastly, the U.S. financial system will launch its PMI readings by 1:45 pm GMT, presumably printing a producing PMI decline from 50.2 to 50.0 and a companies PMI drop from 53.6 to 52.6.

RBNZ financial coverage resolution

One of many extra extremely anticipated top-tier occasions this week is the RBNZ rate of interest assertion on Might 24, 2:00 am GMT, throughout which the central financial institution is more likely to announce one other 0.25% hike.

Now the RBNZ appears removed from firming down their strongly hawkish rhetoric, so reiterating their optimistic outlook for the financial system may lead extra market watchers to cost in greater tightening odds down the road.

In any case, inflationary pressures have remained elevated in New Zealand whereas employment and client spending have additionally been sturdy.

Nevertheless, ought to RBNZ officers counsel that they’re approaching the tip of their fee hike cycle, we’d see a spherical of profit-taking from the Kiwi’s rallies. You’ll want to hold your ears peeled for any clues throughout the RBNZ presser at 3:00 pm GMT.

FOMC Might assembly minutes

One other central financial institution occasion value maintaining tabs on this week is the discharge of the minutes of the Might 2023 FOMC assembly on Might 24, 6:00 pm GMT, throughout which the Fed dashed hopes of seeing a tightening pause any time quickly.

Of their official assertion, policymakers highlighted the power of the labor market and cussed inflationary pressures as causes to hike rates of interest once more.

Fed head Powell additionally downplayed contagion dangers from the banking sector, citing that tighter credit score situations don’t warrant a pause simply but.

Since then, Fed officers have been speaking about the opportunity of a June fee hike throughout their testimonies, underscoring the probability that the Might assembly minutes would replicate these hawkish views.

U.S. core PCE worth index

Final however definitely not least is the Fed’s most well-liked inflation measure or the U.S. core PCE worth index, which is due on Might 26, 12:30 pm GMT.

Yet one more 0.3% month-over-month uptick in worth ranges is predicted for April, marking its third in a row. A stronger than anticipated learn, nonetheless, would level to a different pickup in inflationary pressures.

Recall that the official U.S. CPI reviews for a similar month turned out combined, with the headline studying coming in as anticipated at 0.4% and the core determine beating expectations.