Producer and consumer inflation data will dominate US macroeconomic headlines next week, while unemployment figures are due in the UK.
Markets have UK unemployment ticking up 4.3% over the course of March in Tuesday’s reading, against 4.2% in February and 3.9% in January, according to Trading Economics.
Wage data will be the focus of the report as traders eye potential interest rate cuts soon, after economic growth was stronger than expected in March.
Trading Economics estimates this should sit at 5.9%, from 6% in February, with City Index analysts noting any shocks could “sharply impact UK interest rates pricing”.
“The Bank of England will need to see a corresponding drop in wage growth before it can be more confident that inflation is heading to its 2% goal,” analysts said.
Forecasts for US interest rate cuts will also be in question as producer inflation comes in on Tuesday, before consumer prices on Wednesday.
US consumer prices climbed by 3.5% in March, ahead of expectations, with consensus for April’s figure to be lower at 3.4%.
As hopes have grown for a cut to base interest in September, IG analysts said “the upcoming [...] data will determine if markets have actually gotten ahead of themselves”.
Elsewhere, Japan's economy is expected to have slipped back into contraction territory, with data due on Thursday, while revised EU gross domestic product data is expected on Wednesday.