In This Article:
The Stats
It was a busy week on the economic calendar for the week ending April-29, 2022.
A total of 56 stats were monitored, following 57 stats in the week prior.
Of the 56 stats, 26 beat forecasts, with 26 economic indicators falling short of forecasts. 4 stats were in line with forecasts.
Looking at the numbers, 30 of the stats reflected an upward trend. Of the remaining 26 stats, 25 stats were weaker.
Out of the US
Core durable goods orders and consumer sentiment drew interest on Tuesday. The stats were market positive, with core durable goods orders rising by 1.1% in March.
Consumer sentiment held steady in April, which was also market positive. The CB Consumer Confidence Index slipped from 107.6 to 107.3.
On Thursday, US GDP numbers disappointed, however, with the US economy contracting by 1.4%. In the previous quarter, the economy expanded by 6.9%.
At the end of the week, inflation and personal spending were market positive. Personal spending rose by 1.1% in March, while inflationary pressures softened. The Core PCE Price Index increased by 5.2% year on year in March, down from 5.3% in February.
In the week ending April 29, 2022, the Dollar Spot Index surged by 1.72% to end the week at 102.959. In the week prior, the Index rose by 0.72% to 101.22.
Out of the UK
It was a particularly quiet week, with stats limited to CBI Industrial Trend Orders. In April. Industrial Trend Orders fell from 26 to 14, which was Pound negative.
Risk aversion and market sentiment towards Fed monetary policy ultimately left the Pound deep in the red.
In the week, the Pound tumbled by 2.07% to end the week at $1.2573. In the week prior, the Pound slid by 1.69% to $1.2839.
The FTSE100 ended the week up 0.30%, partially reversing a 1.24% loss from the previous week.
Out of the Eurozone
Early in the week, German business and consumer sentiment diverged. While business sentiment improved, consumer sentiment weakened further.
The Ifo Business Climate Index increased from 90.8 to 91.8 in April, while the Gfk German Consumer Climate Index fell from -15.7 to -26.5.
In the second half of the week, the market focus shifted to inflation and economic growth.
The stats were market positive, with German and the Eurozone GDP numbers for the first quarter providing support.
In Q1 2022, the German economy expanded by 4.0% year on year, up from 1.8% in the previous quarter.
The Eurozone’s economy grew by 5.0% year on year, up from 4.6% in the quarter prior.
On the inflation front, inflationary pressures ticked up further, though only moderately. According to prelim figures, the Eurozone’s annual rate of inflation picked up from 7.4% to 7.5%.