The Nasdaq and S&P 500 continue to print new all-time highs, the US dollar is benefitting from weakness in the Euro and the British Pound, while the recovery in gold continues.
Three major central banks meet this week with a large focus on the UK as the improving CPI trend could usher in a dovish tone from the BoE. RBA to hold, SNB to cut?
A week packed with high impact economic data and events, led by the latest monetary policy decisions by the Federal Reserve and the Bank of Japan.
The ECB is fully expected to start cutting interest rates on Thursday while the monthly US NFPs follow the next day.
The new week will kick off in a calmly and quiet manner, with US and UK markets closed on Monday. The economic calendar, however, will heat up heading into the weekend with the release of Eurozone inflation and US core PCE data, two critical reports for policymakers that could unleash greater volatility.
The U.S. economic calendar will be relatively quiet in the coming week, allowing recent market movements to potentially consolidate. Meanwhile, the release of April inflation data in the UK could introduce increased volatility to UK assets.
Risk markets regained all their early losses this week and continue to press higher. A benign FOMC and a weak US Jobs Report boosted markets going into the weekend.
Risk markets pushed higher over the week, spurred on by a lull in Israel/Iran hostilities. Next week the FOMC and tech heavyweights Amazon and Apple will dominate risk sentiment.
The upcoming week brings the Bank of Japan’s monetary policy decision and a flurry of high-impact economic data and earnings, setting the stage for potential volatility in financial markets.
The US dollar powered ahead in the second half of the week after the latest CPI reading showed US nudging higher.