THIS WEEK'S INDICATORS
Risk sentiment dominated last week on rising confidence surrounding inflation despite the BLS release of a disappointing jobs report by week’s end. With rising growth concerns in Europe, the Euro may remain under pressure while British MPs decide on interest rates. Following poor US wages figures, there is no question the week’s highlight will be the release of the CPI numbers.
DOLLAR INDEX DAILY CHART
MONDAY
The week starts quietly on Bank Holiday, few speeches from the US to spark marginal momentum. Today, markets expect a quiet trading session as no major economic indicators or events are scheduled to take place while banks in the UK are closed in observance of May Day. With a couple of FOMC members speaking, moves of a few pips may be expected. Technicals may dominate.
TUESDAY
Fed Chair Powell delivers speech on monetary policy, markets to move on remarks expected. Early on Tuesday, market players may participate in economic events of Australia and New Zealand. Investors will concentrate mainly on Powell's speech on “Monetary Policy Influences on Global Financial Conditions and International Capital Flows” in Switzerland. Traders look out for hints around June hike, hence, that will be the daily “special”.
WEDNESDAY
US PPI to provide insights on inflation, New Zealand delivers critical Cash Rate. The BLS will deliver insights on US Producer Price Index on Wednesday, just a day before the crucial CPI release. With expectations showing slower pace, traders remain wary. In other events, the RBNZ is expected to leave interest rates unchanged, so the markets are not expected to be very volatile. However, the press conference and testimony that will follow are likely to increase market activity and provider clearer opportunities to traders.
THURSDAY
“Super Thursday” events to direct markets, UK and US indicators loom. BoE will not only publish its interest rate decision and votes on Thursday but also a critical quarterly inflation report projecting inflation and economic growth over the next two years. With the US delivering stubbornly unchanged inflation figures over the past few releases, expectations for interest rates may be renewed.
FRIDAY
Draghi to speak at European University event, Canada delivers own Jobs report. The closing of the week will find investors focusing on Loonie and Euro trades. In Canada, BoC publishes April’s jobs report while figures closer to disciplined averages are anticipated. In Europe, ECB President Draghi will speak at an event in Florence. Traders will look into clues on Q1 slowdown continuation or interruption in order to act upon opportunities.
Risk Disclaimer:
Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Read our full risk disclosure.
Any opinions, news, research, analyses, prices or other information contained on this email or linked to from this email are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.