Financial markets are bracing for an action-packed trading week headlined by the Fed monetary policy announcement and April’s US jobs data.
The US Dollar is looking to the FOMC policy announcement for affirmation of a hawkish policy outlook shift that has brought the currency to three-month highs.
While there the data due out this week aren’t on the scale of the ECB meeting last week, softer growth and inflation readings could still keep the Euro on its back foot as the calendar turns into May.
British Pound Forecast: UK Growth Slump, Longer-Term Set-Ups May Exist
Sterling slumped on the back of much weaker-than-expected UK GDP data making a May rate hike unlikely. If the long-term trends in GBP are respected, opportunities may still exist for Sterling bulls.
The Japanese Yen may find itself being pushed and pulled by USD gains and risk trends. US PCE, April’s Fed rate decision and a local jobs can fuel this dynamic.
The Australian Dollar is already reeling but now faces central bank decisions from its home country and the US which are unlikely to offer it much support
Chinese Yuan Forecast: Yuan Torn Between US-China Political Alliance and Trade Disputes
The US- China relationship has been a top driver to the Dollar/Yuan; it will likely continue to have a mixed development. At the same time, the Yuan faces risks from domestic policies and the economic outlook.
Last week provided another feather in the cap for crude oil bulls with a combination of bullish comments from the IEA, tightening physical supplies from EIA, and OPEC’s progress.
Equities Forecast: S&P 500, DAX, FTSE: Risk Trends in the Spotlight Ahead of FOMC, NFP
Last week saw strength flow back into global stocks, but after the pickup in volatility in Q1, will buyers be able to keep pushing-forward with a heavy slate of economic data on the calendar for next week?
Gold prices pressured as the USD index saw its best week since 2016 having tracked US treasury yields higher in which the 10yr reached a 4yr peak.
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