A Week in the Market (04/26 - 05/02): the Fed and Statistics Will Show the Way

A Week in the Market (26.04 - 02.05): Fed and Statistics Will Show the Way

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The last week of April will not be boring: the Fed and macroeconomic data will give the capital market momentum.

JPY: the BoJ will decide on monetary policy

How to Trade USD/JPY?

This week, the Bank of Japan will gather for a meeting and make decisions on its monetary policy, as well as conclude on the perspectives of the economy and inflation. Normally, the JPY hardly reacts to such events, but if the comments on the CPI or economic horizons turn out unexpected, the JPY will additionally grow.

The Fed: indications of further steps are extremely important

The April meeting of the US Federal Reserve system should be calm and standard – but investors will look for indications of the next steps of the regulator, namely, when and how exactly it will be decreasing stimulation. Most likely, the Fed will say that expectations of the preliminary end of the support have no base under them, this will put the USD under pressure.

USD: the GDP data might give a new driver

The GDP statistics of Q1, 2021 will become the focus of the market attention this week. In Q4, 2020, the economy grew by 4.0%; at the beginning of this year, it might have increased by 6.3-6.5%. The better the results, the more support the USD will have.

GBP: aiming high

This week, Great Britain is publishing the CBI retail sales balance and the house price index. These reports will give us an understanding of what is going on in the economy. The main trigger for the GBP is the course of the vaccination campaign in Great Britain and the weakness of the dollar, which gives the GBP an opportunity to grow.

China: statistics will indicate business sentiment

On the last week of April, China will issue the PMI in production and non-production for the month. This data is vital for both commodity providers and risk assets: the higher the results, the better – this will mean that the Chinese economy is recovering and growing.

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