A not-so-short week is ahead. Despite the Easter holidays, the US Employment report on Friday warrants action till the last day. The Dollar lost ground again in the last week of March, ending with losses in the first quarter. The short-term trend favors Dollar’s bears, but key data ahead could trigger a correction before it resumes the downside.
Here is what you need to know for next week:
US stocks finished the week, the month and the quarter on a positive note, with solid gains, something that seemed unlikely just three weeks ago when the Silicon Valley Bank (SVB) was closed by financial regulators.
The improvement in market sentiment weighed on the US Dollar, which lost ground across the board, at a moderate pace. Government bond yields rose as volatility eased in the Treasury market.
Higher yields and risk appetite sent the Japanese Yen sharply lower, which became the worst performer, falling even against the weak US Dollar. USD/JPY rose 250 pips, to the 20-week simple moving average at 133.50 that capped the upside.
The rally in USD/JPY limited the downside in the US Dollar Index. The DXY posted the third weekly decline in a row and the lowest close since January, around 102.50.
After an inflation-focused week, attention turns to activity and employment data. The March ISM report will help see how the US economy is performing, while the ADP private employment and Nonfarm Payrolls reports will show if the labor market remains tight. Market activity could be subdued because of Easter Holidays, particularly after Wednesday.
The Pound outperformed with GBP/USD rising for the third consecutive week and consolidating above 1.2300. Among the best trades of the week was going long GBP/JPY, which gained 2.50%.
It was a volatile week for the Swiss Franc. USD/CHF approached a key long-term support and then recovered some ground, rising to 0.9150. Next Monday, Switzerland will release inflation data.
AUD/USD posted a small weekly gain as it continued to move sideways. Australian inflation numbers boosted the odds that the Reserve Bank of Australia (RBA) will remain on hold next Tuesday.
NZD/USD rose during the week but once again found resistance around 0.6300. The Reserve Bank of New Zealand (RBNZ) will announce its monetary policy decision on Wednesday.
The Canadian Dollar caught up after lagging for weeks. USD/CAD lost 200 pips, to settle around 1.3540. CAD/JPY rose by 3.35%. Next Thursday, Canada will release its monthly jobs report.
Gold posted another weekly decline as the yellow metal struggles to reclaim the $2,000 level. On the contrary, Silver rose for the third consecutive week, reaching $24.00.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD holds onto RBA gains, ahead of Lowe and key data Premium
AUD/USD rose for the fourth consecutive day on Tuesday, reaching weekly highs above 0.6650. The positive tone around the Aussie prevails following the recent rate hike by the Reserve Bank of Australia. Governor Lowe will speak on Wednesday, and Australian GDP data is also due.
EUR/USD replicates sluggish markets around 1.0700 amid challenges for ECB hawks, Fed blackout Premium
EUR/USD licks its wounds around 1.0700 as bulls and bears jostle during a sluggish week comprising unimpressive data and the Fed blackout. The Euro price pared intraday losses during late Tuesday but remains sidelined as the early Asian session morning restricts the market’s moves.
Gold edges higher as US Dollar, yields dribble on mixed Fed concerns
Gold price seesaws around $1,963 amid the early hours of Wednesday’s Asian session, after a two-day rebound within a short-term trading range. In doing so, the XAU/USD pays little heed to the US Dollar’s slightly positive performance.
Arbitrum community to vote for AIP budget proposal as ARB hints 10% gains
The Arbitrum community has published the draft for the AIP budget proposal, voting to commence on June 9. The proposed budget aligns with the Foundation's strategic needs to represent and service the DAO. Three elements stand out concerning the Foundation's Administrative Budget Wallet.
Readying for hawkish Fed
S&P 500 made two runs over 4,300, yet was rejected in each. Bonds though didn‘t paint universally negative picture – only the sectoral composition of the decline did.