The Week Ahead with GO Markets
By Deepta Bolaky
Massive swings and volatility in the equity markets have also made it difficult for traders to trade in the Forex markets.
The disappointing Non-Farm payrolls and Powell’s speech accentuated the negative sentiment following Trump’s additional tariffs on China. Investors’ fears are growing over the trade rhetoric. Moving to the monetary policy outlook, markets interpreted Jerome’s cautious and patient approach regarding the interest rate hikes as a lack of inflation.
As we step into this week, Trade Wars, NAFTA negotiations and North Korea appear to be the main drivers dominating the markets.
The markets are waiting for the tit-for tat response from China regarding the tariffs. The upcoming speech by President Xi on Tuesday at the Boao forum will be heavily scrutinised as traders will look for Xi’s views on trade. The President might use this platform to respond to Trumps’ additional tariffs.
US economic calendar is not heavily busy but trade concerns might basically overshadow any US related economic data releases.
Inflation figures together with Jobless Claims and JOLTS will be the main events of the week.
Australia & Asia
Light economic calendar for Asia and Australia. Besides trade issues, investors will most likely focus on inflation and trade figures in China scheduled for release on Wednesday and Friday respectively.
With a slow start for Australia, there are not many drivers for the currency which will again be most likely guided by the markets’ sentiment and geopolitical tensions surrounding the trade issues.
Eurozone Industrial Production and UK Retail Sales will be the key events in Europe. The markets are expecting a solid economic condition in the Eurozone despite the slow down we have seen since the beginning of the year.
An increase of 1% is forecasted for the UK Retail Sales in March. However, the markets are aware that March had been the coldest month and UK had experienced snow disruption which could potentially harm the Retail Sales.
|Tuesday, 10th April 2018|
Indicative Index Dividends
Dividends are in Points