The Week Ahead: US CPI, UK GDP, Cisco earnings

Published: Friday, 8 May 2026 at 12:30 (UK)

It is set to be an important week for markets, with the latest reports on US consumer and producer prices due on Tuesday and Wednesday, respectively. Together, these inflation releases often help traders and investors assess the outlook for the Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index – for which the next release date is 28 May. Several consumer price index (CPI) updates from Europe are also due in the coming days, which may shape market expectations for central bank monetary policy. Meanwhile, US earnings season continues, with Cisco and Alibaba among the key names reporting.

US April CPI

Tuesday 12 May
Economists expect the headline measure of US inflation to show that consumer prices rose 0.6% month-on-month and 3.7% year-on-year in April, fluctuating from 0.9% and 3.3%, respectively, a month earlier.

At the same time, core CPI, which excludes volatile food and energy prices, is forecast to have increased 0.4% month-on-month and 2.7% year-on-year in April, up from the March readings of 0.2% and 2.6%, respectively.

The April inflation figures may influence currency markets, particularly EUR/USD, which has traded in a narrow range since early May. Stronger-than-expected CPI data could support the dollar, while softer readings may weigh on it. The pair is currently testing resistance near $1.18. A sustained move above this level could open the way towards $1.1920, though a stronger dollar could send the pair back down towards $1.15.

EUR/USD, March 2025 - present

^{Sources: TradingView, Michael Kramer}

Cisco Q3 earnings

Wednesday 13 May
Cisco is expected to report that its third-quarter earnings grew 7.8% to $1.04 a share, as revenue increased about 10% to $15.6bn, based on analysts' estimates. Gross profit margins are forecast to have tightened to 66.2%, down from 67.5% in the previous quarter. Looking ahead to Q4, analysts see earnings rising 8.4% to $1.07 a share, with revenue projected to climb 7.8% to $15.8bn and margins set to expand slightly to 66.5%.

The options market implies that shares of the Nasdaq-listed technology firm – up more than 20% this year at about $92 – could move 5.9% in either direction following the Q3 earnings release. Implied volatility on Cisco options expiring on 15 May is relatively modest at around 60%, while positioning appears skewed to the upside. This could leave the shares exposed to a pullback if analysts' expectations are not met. Options-related data suggests that support is near $77.50 and resistance is around $100.

Technical analysis paints a slightly different picture, with support around $85 and resistance at about $95. The stock remains in an uptrend but is approaching the upper Bollinger Band, while the relative strength index (RSI) is approaching 70, typically considered overbought territory. This may indicate that the stock could be nearing a top, with the potential for a short-term pullback, particularly if the results fail to deliver an upside surprise.

Cisco Systems share price, July 2025 - present

^{Sources: TradingView, Michael Kramer}

UK Q1 GDP

Thursday 14 May
Economic growth in the UK picked up in February, when the economy expanded 0.5% month-on-month, up from a 0.1% uptick in January. The March and overall Q1 data will be watched closely to gauge whether higher oil prices have begun to affect economic activity and whether growth can be sustained.

Market sentiment towards the UK economy could affect the FTSE 100, which has underperformed US indices in recent weeks, though it continues to hold above the 10,250 mark. If the GDP figures point to weaker growth amid rising price pressures, markets may increase their bets on Bank of England interest rate hikes. In that scenario, the UK's leading share index may face further downside, with the 10,000 level potentially becoming an area of support.

FTSE 100, December 2025 - present

^{Sources: TradingView, Michael Kramer}

Economic and company events calendar

Major scheduled economic announcements and selected earnings announcements from US- and UK-listed companies include:

Monday 11 May
- China: April consumer price index (CPI)
Results: Barrick Mining (Q1), Constellation Energy (Q1), Fox (Q3)

Tuesday 12 May
- Australia: Annual budget release, May Westpac consumer confidence
- Germany: April CPI
- UK: April like-for-like retail sales
- US: April CPI
Results: JD.com (Q1), Sea Limited (Q1), Vodafone (FY)

Wednesday 13 May
- Eurozone: Q1 flash gross domestic product (GDP)
- France: April CPI
- New Zealand: Q2 inflation expectations
- US: April producer price index (PPI)
Results: Alibaba (FY), Birkenstock (Q2), Cisco (Q3), Dynatrace (Q4), Tower Semiconductor (Q1)

Thursday 14 May
- UK: Q1 flash GDP
- US: April retail sales, weekly initial jobless claims
Results: Applied Materials (Q2), Burberry (FY), ITV (Q1), Klarna (Q1), National Grid (FY), Nu (Q1), Viking (Q1)

Friday 15 May
- US: April industrial production
Results: RBC Bearings (Q4)

Note: While we check all dates carefully to ensure that they are correct at the time of writing, the above announcements are subject to change.