Asian equities started the week lower with escalating violence in Iraq weighing on sentiment.
Rebels from the Islamic State of Iraq and the Levant seized the northwestern city of Tal Afar on Sunday, further solidifying their grip on the country's northern region. The offense came after they claimed to have executed 1,700 government soldiers over the weekend. Trading was also cautious in the run up to the Federal Reserve's policy review on Wednesday.
"The week is, quite literally, centered on the FOMC meeting. FOMC fixation is coloured by the sharp contrast between ECB easing and BoE flagging sooner-than-expected hikes. To be sure, the Fed is not expected to recant on normalization, and another $10 billion reduction in asset purchases is almost universally expected," said Vishnu Varathan, senior economist at Mizuho in a note.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.