Here is what you need to know about the important news between May 2nd 2022 and May 6th 2022, where we take a look at the economic data, market news and headlines likely to have the biggest impact on the market prices this week and beyond, as well as the US Dollar, and other key correlated assets.
May starts with positive momentum on the markets, since United States, United Kingdom, and Australia, are expected to announce the update of their interest Rates to 1%, and 0.25% for Australia.
U.S. dollar index
Also known as DXY, is used by traders seeking a measure of the value of USD against a basket of currencies used by US trade partners. The indicator hit its highest level for 2022, focusing on the rates announcement during the week, with the rumours to increase interest rates by 0.75% to be in the air, but markets seems to be unconvinced.
Gold
Gold during this week, is focusing on the Russia Ukraine conflict again, while also the interest rates announcements, might have a major impact on the precious metal, even though the increase on the rates is expected for long time now.
Oil
Oil prices got some solid gains during past week, with crude and brent increasing by around 3% in price, during the last five trading sessions. The possibility for Europe to impose embargo on Russian petroleum, is counterbalanced by Covid 19 lockdown in Shanghai for now.
Us Stocks
S&P 500 is close to the worst quarter since the beginning of the pandemic in 2020. Fed policy remains the main driver for the sentiment of wall street investors, with the equity markets to focus on the announcement this week for the rates increase that is expected now for many months.
Central Bank
International central banks were quite active this week.
US Federal Reserve (FED)
Federal Reserve this week has the lights on them, with the long-awaited interest rates increase to be on the focus of investors. The Increase is expected to be 0.5 basis points to reach 1%, while some analysts say that there is always the possibility to increase them even more.
European Central Bank (ECB)
ECB is being encouraged to change its forward guidance for monetary policy, since more Governing council officials are showing greater willingness to switch gears, while also the US rate decision might have a large impact on the EUR/USD for the week.
Bank of England (BOE)
Bank of England is also expected to announce the increase on the interest rates to 1% from 0.75%. Investors should also keep the eyes and ears open, regarding the officials votes, since from February onwards, the votes to increase the rates are not unanimously in favour of the increase.
Other important economic data is as follows: (All times listed are GMT+3)
Monday, May 02, 2022
All Day: Holiday – GBP – CNY
14:00 USD – ISM manufacturing PMI
Tuesday, May 03, 2022
All Day: Holiday – JPY – CNY
04:30: AUD – Cash Rate
04:30: AUD – RBA Rate Statement
14:00: USD – Jolts Job Openings
22:45: NZD – Employment Change q/q
22:45: NZD – Unemployment Rate
Wednesday, May 04, 2022
All Day: Holiday – JPY – CNY
12:15: USD – ADP non Farm Employment Change
18:00: USD – FOMC Statement
18:00: USD – Federal Funds Rate
18:30: USD – FOMC Press Conference
Thursday, May 05, 2022
All Day: Holiday – JPY
11:00: GBP – BOE Monetary Policy Report
11:00: GBP – MPC Official Bank Rate Votes
11:00: GBP – Monetary Policy Summary
11:00: GBP – Official Bank Rate
Friday, May 06, 2022
12:30: CAD – Employment Change
12:30: CAD – Unemployment Rate
12:30: USD – Average Hourly Earnings m/m
12:30: USD – Non-Farm Employment Change
12:30: USD – Unemployment Rate
Thanks for reading! Have a great week! 
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