This week, keep an eye on crucial economic indicators and central bank decisions that could sway market sentiment 👀
Events such as the release of March's Consumer Price Index (CPI) and Core CPI, along with the Bank of Canada and European Central Bank interest rate decisions, will be closely watched by investors. Additionally, market participants will be monitoring the release of the Producer Price Index (PPI) and the UK's Gross Domestic Product (GDP) figures, all of which could have significant implications for trading 💼 portfolios.
🇺🇸 March’s CPI and CPI ex. Food and Energy (Core CPI), April 10, at 15:30 GMT+3
This week, market focus is on the release of March's Consumer Price Index (CPI) and Core CPI, excluding food and energy. The CPI report, a key measure of inflation alongside Personal Consumption Expenditures (PCE), holds significant sway over policymaker decisions, business strategies, and consumer behavior. Expectations are for a 0.2% monthly increase, down from the previous 0.4%, indicating a potential decrease in inflation. This could prompt the Federal Reserve to consider faster interest rate cuts, impacting assets like EUR/USD and US stocks.
🇨🇦 BoC Interest Rate Decision, April 10, at 16:45 GMT+3
Upcoming is the Bank of Canada (BoC) Interest Rate Decision, a pivotal event for the market, especially concerning the USD/CAD pair. Currently standing at 5%, analysts predict the rate to remain unchanged. However, attention will be on signals hinting at potential future cuts in subsequent meetings. This release gains significance as USD/CAD maintains a bias towards higher levels around 1.3600 after recent gains were trimmed. Any shifts in BoC's stance could significantly impact the currency pair's direction.
🇪🇺 ECB Interest Rate Decision, April 11, at 15:15 GMT+3
The upcoming ECB Interest Rate Decision marks another crucial release regarding interest rates. Currently set at 4.50%, analysts expect the rate to remain unchanged. However, attention will be on any clear signals indicating potential future cuts in subsequent meetings.
This decision holds significance for assets like the DAX30 index and the EUR/USD pair. Particularly noteworthy is that EUR/USD appears to have entered a consolidation phase above 1.0800 after breaking a three-week losing streak, reflecting the pair's indecisiveness in the near term. The ECB Interest Rate Decision is a monetary policy tool used by the European Central Bank to control inflation and stabilize the eurozone economy. It influences borrowing costs for banks and ultimately impacts economic activity and currency values.
🇺🇸 March’s Producer Price Index (PPI), April 11, at 15:30 GMT+3
The next significant release for the American market is March's Producer Price Index (PPI). This report, reflecting input prices for producers and manufacturers, serves as a crucial indicator for inflationary pressures. Anticipated to show a monthly increase of 0.0%, down from the previous 0.6%, the PPI data corroborates signs of decreasing inflation. Consequently, assets like the US Dollar and indices such as the Dow Jones, SPX500, and Nasdaq may experience heightened volatility.
🇬🇧 GDP m/m, April 12, at 09:00 GMT+3
The final announcement for the week is the release of the UK's Gross Domestic Product (GDP) month-on-month. Anticipated to potentially decrease to 0.0% compared to the previous reading of 0.2%, this data could impact GBP/USD and the FTSE100 index.
It's crucial to pay attention to this pair as the Pound Sterling hesitates in its recovery from seven-month lows against the US Dollar. GBP/USD remains cautious ahead of Wednesday's US CPI inflation data. The Pound Sterling faces downside risks as the daily Relative Strength Index (RSI) remains below 50.00.
That's it for this week! 👋
