Expecting very intense and dynamic week

In the week ahead, investors will continue to focus on U.S. economic reports to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016, with Friday’s retail sales data in the spotlight.

In addition, there are more than a half-dozen Fed speakers on tap as traders search for more clues on the timing of the next U.S. rate hike.

Elsewhere, China is to release a flurry of economic data, including reports on the trade balance and consumer price inflation, as market players look for further indications on the strength of the world’s second largest economy.

Meanwhile, the euro zone and Germany are to publish revised data on first quarter economic growth on Friday.

Thursday’s rate decision and monetary policy meeting minutes from the Bank of England will also be in focus.

The biggest events on the economic calendar that are most likely to affect the markets are:

Fed speakers

Market players will pay close attention to a number of speeches from Federal Reserve officials during the week to judge the balance of opinion among policymakers on the prospect of further rate hikes.
The Fed speakers start Monday with Chicago Fed President Charles Evans, Minneapolis Fed President Neel Kashkari and San Francisco Fed President John Williams are all due to speak throughout the day.
Tuesday sees New York Fed President William Dudley, the official viewed as most closely aligned with Fed Chair Janet Yellen, take the stage. Cleveland Fed President Loretta Mester, Boston Fed President Eric Rosengren and Kansas City Fed President Esther George will speak at public events on Thursday, followed by San Francisco Fed's Williams on Friday.

Chinese trade data

China released monthly trade data on Sunday, which showed that both exports and imports fell more than expected in April. Exports slumped 1.8% from a year earlier, worse than forecasts for a decline of 0.1%, while imports dropped 10.9%, compared to expectations for a fall of 5.0%. That left China with a surplus of $45.6 billion last month. The Asian nation will also publish data on April consumer and producer price inflation on Tuesday, followed by reports on industrial production, fixed asset investment and retail sales late on Friday.

Bank of England "Super Thursday"

The Bank of England will release its rate decision as well as minutes of its Monetary Policy Committee meeting and its quarterly inflation report at 11:00GMT, or 07:00AM ET, on Thursday. Last month, the Monetary Policy Committee voted 9-0 to keep rates on hold at a record low 0.5%.
Expectations for a rate hike by the Bank of England have been pushed back to early-2017 due to a recent spate of weaker than expected data and amid uncertainty over a referendum on whether or not Britain should stay in the European Union.

Euro zone Q1 GDP

The euro zone will publish revised data on first quarter economic growth at 09:00GMT, or 05:00AM ET, on Friday. The consensus forecast is that the report will show the economy grew 0.6% in the first three months of 2016, unchanged from a preliminary estimate and after expanding 0.3% in the final quarter of 2015. Germany will release its individual report at 06:00GMT. The euro zone's largest economy is forecast to grow 0.6% in the first quarter after increasing 0.3% in the preceding quarter.

U.S. April retail sales report

The Commerce Department will publish data on April retail sales at 12:30GMT, or 08:30AM ET, Friday. The consensus forecast is that the report will show retail sales rebounded 0.7% last month, after falling 0.3% in March. Core sales are forecast to increase 0.5%, after rising 0.2% a month earlier.