|

Forecasting the Coming Week: Markets maintain focus on inflation

Another positive week saw the Greenback reclaim the area beyond the 104.00 hurdle, advancing modestly on a weekly basis against the backdrop of the mixed performance in US yields and Fedspeak supporting a tighter-for-longer Fed’s stance.

Stronger-than-expected NFP readings lent support to the Greenback at the end of the week. The RCM/TIPP Economic Optimism Index is due on April 9, seconded by the Inflation Rate, Wholesale Inventories, and FOMC Minutes, all expected on April 10. On the next day, Producer Prices are due, and the preliminary Michigan Consumer Sentiment will close the week on April 12.

EUR/USD managed to reclaim the area above 1.0800, mostly on the back of Dollar weakness and risk appetite trends in the first part of the week. Germany’s Balance of Trade results are due on April 8, followed by the ECB meeting on April 11, and the final German Inflation Rate on April 12.

GBP/USD ended Friday’s session on the defensive, coming under pressure in the second half of the week on the back of the late bounce in the Greenback. The UK docket will see the BRC Retail Sales Monitor on April 9 ahead of GDP readings, Balance of Trade, Construction Output, and Industrial and Manufacturing Production, all due on April 12.

USD/JPY maintained its consolidation range below the 152.00 region once again this past week, always amidst persistent FX intervention fears. On April 8, the Eco Watchers Survey is due, along with Consumer Confidence on April 9. Additionally, Bank Lending figures and Producer Prices are expected on April 10, while Foreign Bond Investment and final Industrial Production are due on April 11 and April 12, respectively.

In quite a volatile week, AUD/USD revisited the area above 0.6600 the figure, although it ran out of some upside impetus towards the end of the week. On April 8, Home Loans are due ahead of the Westpac Consumer Confidence Index on April 9. Additionally, consumer inflation expectations come on April 11.

Anticipating Economic Perspectives: Voices on the Horizon

  • BoE’s Breeden speaks on April 8.
  • Fed’s Kashkari speak on April 9.
  • Fed’s Goolsbee is due to speak on April 10.
  • Fed’s Williams, Collins and Bostic speak on April 11 along with BoE’s Greene.
  • BoE’s Greene, Fed’s Bostic and Daly all speak on April 12.

Central Banks: Upcoming Meetings to Shape Monetary Policies

  • The BSP meets on April 8 (unch)
  • The RBNZ, the BoC and the BoT meet on April 10 (unch).
  • The ECB will decide on rates on April 11 (unch).
  • The BoK meets on April 12 (unch).

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin is steadying above $91,000 at the time of writing on Friday. Ethereum remains above $3,100, reflecting positive sentiment ahead of the Federal Reserve's (Fed) monetary policy meeting on December 10.

Week ahead – Rate cut or market shock? The Fed decides

Fed rate cut widely expected; dot plot and overall meeting rhetoric also matter. Risk appetite is supported by Fed rate cut expectations; cryptos show signs of life. RBA, BoC and SNB also meet; chances of surprises are relatively low.

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs.