Upcoming Key Events This Week

French Parliamentary Elections – All Day: The French elections will be closely watched as the results could influence the Euro and broader markets. A left-leaning bloc victory might lead to political instability, but if moderate factions form a coalition with centrists, it could calm markets and support the Euro.

GBP BRC Retail Sales – 12:01am BST: With the next Bank of England (BoE) rate meeting approaching, updates on consumer spending are crucial. This data can influence GBPUSD and the UK 100, reflecting the UK economy’s health and potential central bank actions.
Fed Chair Powell Testifies – 3:00pm BST: Federal Reserve Chair Jerome Powell’s testimony to Congress is highly anticipated. With recent US economic data underperforming, traders will be keen to hear his views on the economy, inflation, and potential rate cuts. This could have significant implications for US stocks and the dollar.
Treasury Sec Yellen Speaks – 3:00pm BST: Treasury Secretary Janet Yellen’s speech will also be closely monitored for insights into the US economic outlook and fiscal policy.

China Inflation Data (CPI/PPI) – 2:30am BST: China’s Consumer Price Index (CPI) and Producer Price Index (PPI) will provide crucial insights into the health of the Chinese economy. Weak data could increase calls for further stimulus, impacting the China A50 and Hong Kong 50 indices.
RBNZ Interest Rate Decision – 3:00am BST: The Reserve Bank of New Zealand (RBNZ) is expected to keep the official cash rate at 5.50%. Despite no expected change, the statement might offer clues on future rate cuts, influencing NZDUSD.
Fed Chair Powell Testifies – 3:00pm BST: Powell continues his testimony, offering further insights that could impact market sentiment.
USD 10-Year Bond Auction – 6:01pm BST: The results of this bond auction will be important for assessing investor demand and the outlook for US interest rates.

UK GDP m/m – 7:00am BST: The monthly GDP data for the UK will be critical for gauging the health of the British economy. A stronger-than-expected reading could influence the Bank of England’s monetary policy and impact GBPUSD and UK 100 indices.
US Inflation Data (CPI) – 1:30pm BST: The Consumer Price Index (CPI) release is crucial for determining the Federal Reserve’s next move. A lower-than-expected print could increase expectations for a rate cut, affecting US stock indices and the dollar. The Core CPI is expected to rise by 0.2% month-over-month and 3.1% year-over-year.
US Unemployment Claims – 1:30pm BST: Weekly unemployment claims will provide additional insights into the US labour market’s health.
USD 30-Year Bond Auction – 6:01pm BST: This auction will be important for understanding long-term interest rate expectations.
US Q2 Earnings Season Begins: The earnings season kicks off with reports from PepsiCo and Delta Airlines. However, the main focus will be on major US banks, including Wells Fargo, JP Morgan, and Citigroup, reporting on Friday. Early earnings reports, particularly from major banks, will provide a snapshot of corporate health and economic conditions, influencing broader market trends.

US Producer Price Index (PPI) – 1:30pm BST: The Producer Price Index (PPI) data, focusing on factory gate prices, will be closely watched as it is an important indicator of inflation. This release could move US stocks and the dollar.
US Preliminary Michigan Consumer Sentiment – 3:00pm BST: The University of Michigan’s Consumer Sentiment Index will provide insights into consumer confidence, which has recently been weakening. Another drop could impact market sentiment, especially for those hoping for continued consumer spending to drive economic growth.
US Preliminary Michigan Inflation Expectations – 3:00pm BST: This release will offer a look at future inflation expectations, which are critical for understanding the long-term inflation outlook.