A Week in the Market (24.05 - 30.05): GDP Statistics from the USA and General Weakness of the Dollar

A Week in the Market (24.05 - 30.05): GDP Statistics from the USA and General Weakness of the Dollar

Reading time: 3 min



The final week of May will be dynamic and bright: the market will be focused on US statistics, meetings of Central banks, and a lot of speeches of monetary and fiscal politicians.

GBP: the pound aiming at 1.4200

Great Britain will present quite scarce statistics this week: check the CBI retail sales balance and the public sector net borrowing parameters. Anyway, the GBP is rather strong compared to the weak USD and might even head for 1.4200 without any statistical support.

Central banks: meetings go on

This week, Central banks of the following countries are having their meetings: Indonesia, Hungary, Nigeria, and South Korea. In all the cases, interest rates are likely to remain without changes. The Reserve bank of New Zealand is also having a meeting, and the interest rate is also likely to remain without a change at 0.25% per annum. The stability of monetary strategies at the CB level is a good signal for risky assets.

USD: check statistics and the GDP

This week, the USA is preparing a block of curious statistics, including durable goods orders, personal income and spending, and the GDP in Q1. The forecast promises economic growth by 6.4% q/q. The better the results, the better for the USD.

JPY: statistics will show how fast inflation grows

Japan is preparing statistics of the unemployment, retail sales, the CCI, housing starts, and the base CPI in Tokyo. The latter is a leading indicator of general inflation, which means it is more than informative. If deflation is confirmed, the JPY will get weaker.

The Davos forum: EUR and GBP might rise

On May 25th, Tuesday, the World economic forum in Davos starts. This year, all global meetings at such a level are online, however, this does not make the topics raised less important. The key topic of 2021 is the new global situation. And if politicians note that the pandemic is subsiding, and the virus is spreading slower, risky assets will have new reasons for growth.

The USD can drop even deeper because optimistic hopes for the end of the pandemic gradually decrease interest towards safe-haven assets. However, for the EUR and GBP this will be a new reason for growth.




We will post articles based on the best suggestions.

Comments

Previous article

How to Use MyFxBook for Trading in Forex

Trading platforms provide limited statistics of the trader’s work. Those who need more data can use the MyFxBook service. This article describes the process of using it.

Next article

IPO of Paymentus Holdings Inc.: a Fintech for Smaller Businesses

In this article, I’ll tell you about an IPO of Paymentus Holdings Inc., the company that developed a cloud platform for bill payments. Unlike many other fintech companies, Paymentus is entering the market being profitable with an annual earnings growth rate of over 25%.