A Week in the Market (04/05 - 04/11): No Time for Boredom

A Week in the Market (04/05 - 04/11): No Time for Boredom

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The second week of the month is not too rich in macrostatistics but there are definitely things to look at: the session of the RBA, the comments by Powell, the head of the Fed, and some digits.

USD: dollar remains strong

The main flow of the most important US statistics is over, however, in the new week of April pay attention to consumer crediting data, the PPI, and some secondary releases. The head of the US Fed Jerome Powell will deliver a speech, alongside several heads of the Federal Reserve bank. The USD remains strong, and there are few factors that can press it down these days.

AUD: the RBA will decide on the interest rate

The Reserve bank of Australia has a session this week, planning to make some decisions on its credit and monetary policy. The interest rate is at its lowest of 0.10% per annum and is likely to remain like this. In the comments, the RBA might note some improvements in the employment sector, which will provide substantial support for the AUD.

JPY: statistics will show the reality of the economy

This week, Japan is issuing reports on average earnings and household spending in February; we are interested in the latter release as the most demonstrative way to assess the spending of the population. The indicator is likely to keep declining, reflecting problems in the economy. Normally, the JPY does not react to statistics, but if they turn out bad, the currency might decline.

The Fed: are there any hints on the increase in the interest rate in the minutes?

This week, the US Federal Reserve system is issuing the minutes of its previous session. The market keeps thinking that the Fed will have to toughen the conditions earlier than expected, hence, investors will be looking for indications of any increase in the interest rate in all documents (and the minutes are perfect here). This time, it is unlikely they will find anything, which means the USD will remain neutral.

EUR: investors are interested in German statistics

This week, Germany is publishing trade balance data, industrial production, industrial orders, and the PMI is services. The EUR is more sensitive to the German statistics than to the general European statistics, hence, good data will support the currency and weak digits will push it down.

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