Last week, the US CPI inflation rose 4.2% in April from a year ago, well above consensus forecasts for 3.6% and climbing to its highest rate since the eve of the 2008 financial crisis.
Additionally, the US Producer Price Index increased 0.6% in April after surging 1.0% in March. The annual figure shot up 6.2%, the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March.
Fed officials said that they had expected a spike in inflation and that it would be temporary.
Looking ahead, the minutes of the FOMC meeting due Thursday is expected to provide investors with an insight into the Fed’s thinking on monetary policy.
The Fed kept its interest rate unchanged at 0.25% as it handed down its last policy decision. Fed Chairman Jerome Powell played down speculation over a potential early tapering of asset buying, saying it was not time yet and that employment still had a long way towards recovery.
In the Eurozone Area, the GDP will be published on Tuesday and it is expected to come out at -0.6% q-o-q growth. This would lead to an annual realization of -1.8%.
Moreover, keep your eye on the Consumer Price Index in the Eurozone on Wednesday. On a year-on-year basis, the Eurozone CPI is expected to be 1.6%. A higher than expected reading will be positive for the single currency.
17 May 21 (Mon)