Investing.com - In the week ahead, market players will be turning their attention to Wednesday’s minutes of the Federal Reserve’s March policy meeting for fresh clues on the timing of the next U.S. rate hike.
U.S. inflation data will also be in focus, as investors attempt to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
Elsewhere, market participants will be looking ahead to key U.K. data for further indications on the strength of the economy amid uncertainty over a June referendum on whether or not Britain should stay in the European Union.
Preliminary data on Japanese first quarter growth will also be in focus, amid concerns over recent yen strength and its implication on economic growth prospects.
Outside the G7, traders will be awaiting minutes from the Reserve Bank of Australia’s May policy meeting at which it unexpectedly cut interest rates to a record low.
Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.
1. FOMC meeting minutes
Investors will be focusing on minutes of the Federal Reserve’s April policy meeting due on Wednesday at 18:00GMT, or 2:00PM ET, for some clarity on where the U.S. central bank stands on its path toward rate hikes.
The Fed left interest rates unchanged following its meeting on April 27 and issued a statement implying it was in no hurry to raise rates.
The U.S. central bank has previously projected it plans to raise interest rates two more times before the end of the year, while market players expect just one more hike, most likely in December.
2. U.S. inflation data
The Commerce Department will publish April inflation figures at 12:30GMT, or 8:30AM ET, Tuesday. Market analysts expect consumer prices to inch up 0.3%, while core inflation is forecast to increase 0.2%.
On a yearly base, core CPI is projected to climb 2.1%. Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.
Rising inflation would be a catalyst to push the Fed toward raising interest rates.
3. U.K. CPI, employment & retail sales data
The U.K. Office for National Statistics will release data on consumer price inflation for April at 08:30GMT, or 4:30AM ET, on Tuesday. Analysts expect consumer prices to rise 0.5%, after increasing 0.5% a month earlier.
At 08:30GMT, or 4:30AM ET, Wednesday, the ONS will publish the April jobs report. The amount of people receiving jobless benefits is expected to rise by 4,000 in April, with the jobless rate holding steady at 5.1%, while wage growth including bonuses is forecast to rise 1.7%.
On Thursday, the ONS will produce a report on April retail sales at 08:30GMT, or 4:30AM ET, which will offer further clues on the strength of the economy and the timing of a rate hike by the Bank of England.
Expectations for a rate hike by the BOE have been recently pushed back to early-2017 due uncertainty over a June referendum on whether or not Britain should stay in the European Union.
4. Japan first quarter preliminary GDP
Japan will publish preliminary first quarter economic growth data at 23:50GMT, or 7:50PM ET, on Tuesday. The report is expected to reveal that Japan's economy expanded by just 0.1% in the first three months of this year, maintaining pressure on policymakers to support the world's third largest economy.
5. RBA monetary policy meeting minutes
The Reserve Bank of Australia will publish minutes from its most recent monetary policy meeting on Tuesday at 01:30GMT, or 9:30PM ET on Monday. The RBA surprised markets earlier this month by cutting its benchmark interest rate by 25 basis points to a record low 1.75%, the first easing in a year, as it seeks to restrain a rising currency and stave off the creeping curse of deflation.
Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/