FX Week Ahead Overview:
- After a new multi-decade high in US inflation rates was revealed last week, Fed policymakers will hit the lecture circuit to try and calm the markets’ nerves.
- Inflation data from Canada and New Zealand this week should reinforce market expectations that further rate hikes are coming from the Bank of Canada and Bank of New Zealand.
- However, any upside in Eurozone or Japanese inflation figures are still likely to be dismissed by the Bank of Japan and European Central Bank.
For the full week ahead, please visit the DailyFX Economic Calendar[1].
ALL WEEK | USD Federal Reserve Policymakers’ Speeches
Absent an April Federal Reserve rate decision, policymakers are hitting the lecture circuit in full stride over the coming days as market anxiety continues to rise over the latest batch of US inflation data. The March US inflation rate report (CPI) produced another 40-year high in price pressures, helping reinforce odds that the FOMC[2] will deliver a 50-bps rate hike when they meet next in May. Due up this week: Bullard (Monday, 20 GMT); Evans (Tuesday, 16:05 GMT); Daly and Evans (Wednesday, 14:30 GMT); and Powell (Thursday, 15 GMT and 17 GMT).
04/20 WEDNESDAY | 12:30 GMT | CAD Inflation Rate (CPI) (MAR)
Canadian inflation figures continue to march higher, keeping pressure on the Bank of Canada to raise interest rates quickly. According to a Bloomberg News survey, the March Canada inflation rate rose by +0.9% m/m from +1% m/m, clocking in at +6.1% y/y from +5.7% y/y. With no meeting in May, rates markets are expecting the BOC to act aggressively when policymakers meet next in June, with a 91% chance of a 50-bps rate hike currently discounted. As a rule of thumb, if rate hike odds
