1. UK Unemployment Jobless Claims Change
2. US Consumer Price Index

UK Unemployment Jobless Claims Change (APR) (8:30 GMT; 04:30 EST)
Consensus:  7.3K
Previous: 12.6K

Outlook: Jobless claims are expected to increase a further 7,300, approaching a three-year high, although the increase is expected to be less than last month's 12,000 jump.  The weak February and March numbers suggest that the labor market remains subdued, however recent upturns in Industrial and Manufacturing Production may lead to a better environment moving forward.  The employment situation has been affected somewhat by 2005's sluggish end-of-year growth.  Last year, the economy expanded 1.8%, the lowest number since 1992.  The Bank of England predicted in February an increase of 2.7% for this year with inflation around its target rate of 2 percent.

Previous:  U.K. unemployment crept up to 5.1% in February as job gains were offset by layoffs.  The Jobless claims change for March was the most in two years and brought the total claim rate to the highest in more than 13 years.   Retail sales and manufacturing output declined as well, likely due at least in part to the number of worker layoffs.  However, expansion was seen in the services industry that drives two-thirds of the economy.  This, combined with rising home prices in the $6 trillion property market, has prevented the Bank of England from making any changes to interest rates.  The data out of the U.K. was mixed, confusing signs of a recovering and expansion in the British market.

US Consumer Price Index (April) (12:30 GMT, 8:30 EST)
Consensus:  0.5% MoM, 3.5% YoY
Previous:  0.4% MoM, 3.4 % YoY

Core prices
Consensus:  0.2% MoM, 2.2% YoY
Previous:  0.3% MoM, 2.1% YoY

Outlook:  US consumer prices are expected to rise by 0.5 percent in the month of April as oil prices surged above $70 a barrel last month.  Higher gasoline receipts should boost headlines prices, but the real concern is core prices.  Core prices on a producer level already fell short of expectations last month, rising by a mere 0.1 percent last month.  This raises the possibility of core consumer price growth also being subdued.  If so, then inflation concerns will be pared back as the market forecasts a less aggressive Fed. 

Previous: US Consumer prices rose 0.4 percent in the month of March as core prices jumped 0.3 percent, the largest rise in almost a year.  Higher energy prices are filtering into many other sectors as airliners and other companies such as Marriott International increase their prices to cover the rising costs.  The travel industry has fighting furiously to protect their profits and have even raised prices as a result. 

Richard Lee is a Currency Strategist at FXCM.