Chinese, Global Growth Forecasts Top Fundamental FX Drivers This Week
The economic docket will fill out with critical event risk ahead. At the top of the list will be 1Q Chinese GDP along with the IMF's forecasts for growth and financial stability for the world's most important regions.
The Dollar was little changed this past week – which is an impressive turn of events for the currency considering the previous bouts of painful selling.
The ECB may open up its easing measures later on in the year, but for now, with energy prices and inflation expectations stabilizing, it appears to be on the sideline for the immediate future. The only question is, how far can EUR/USD rise without ECB interference?
The Bank of England’s (BoE) April 14 policy meeting may spur a limited market reaction as the central bank is widely anticipated to retain its current policy ahead of the referendum in June, but signs of sticky U.K. inflation accompanied by dovish comments from Fed officials may generate a near-term rebound in GBP/USD as U.S. interest-rate expectations falter.
The Australian Dollar may continue downward after last week’s losses as a soft jobs report boosts RBA rate cut bets while US economic and earnings news-flow drives risk aversion.
The onshore and offshore Yuan rates moved in opposite directions this past week: the offshore Yuan (CNH) held a bearish position against the US Dollar while the onshore Yuan (CNY) closed slightly higher on Friday.
Gold pricerallied for a second consecutive week with the precious metal advancing 1.26% to trade at 1237 ahead of the New York close on Friday.
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