SMM5 17: euro zone CPI is the focus of attention, so the European Central Bank has to further delay raising interest rates is an important reason is that inflation is too weak. At present, the market is expected to be 1.7%, the highest level since 2019, if in line with expectations, although it is still some way from 2%, but it suggests that signs of economic recovery in Europe are becoming more and more obvious. Investors need to combine a series of economic data released earlier this week that, if all performed well, would further strengthen confidence in the market and push up the euro.
It is worth noting that general elections will be held in Australia from May 18. Although the RBA chose to keep interest rates unchanged to reduce political uncertainty. But news of the recent economic strength of the ruling Liberal Party, which has repeatedly turned into a bad check, has greatly weakened its position in the eyes of the public.
Analysts believe that if the Liberal Party wins, the removal of the uncertainty of the ruling party will temporarily benefit the Australian dollar in the short term. But if the liberals fail, the uncertainty created by this situation will be bearish for the Australian dollar. In opinion polls, the ruling coalition fell behind by 8 to 10 percentage points in the two weeks before the election, and the situation seems to be moving in a worse direction. As the general election takes place over the weekend, commodity currency investors need to pay attention to cutting their positions and leaving the market.
In the evening, focus on the University of Michigan consumer confidence index in May, financial market confidence is a leading indicator of consumer spending, accounting for the majority of economic activity. The University of Michigan's consumer confidence index is more closely related to consumer spending. If consumer confidence rises, the bond market sees it as bearish.
Today's important financial data are shown in the table below:
