Trading Week Ahead: 29th – 2nd April
Last Week’s Recap
The USD had another mainly stronger week continuing gains to the EUR and AUD as risk demand continues to suffer. Trade remained mixed to the JPY as the safe-haven retreated late in the week after plenty of demand earlier on. The Fed’s testimony part two gave a solid shot to stocks as buyers came back full force to reverse declines and set up potential trend continuations. We have discussed these patterns in detail in our last CFD report.
Powell commented that they don’t expect inflation to be too high and have the tools to guide it back to the 2% area. He also commented that they could see 6.5% growth in a strong year. Fed Evans also commented about seeing better signs now than compared to 2020. he also suggested that 10-year yields are seen as lower than expected due to the amount of fiscal spending.
The SNB left its monetary policy unchanged and this surprised the market to a degree. The USD continued its surge to the CHF moving above 0.94.
The Yen had some influence from the Bank of Japan, as they will continue to buy ETFs as needed. They won’t unload ETF holding for the time being. The Japanese government also pledged 300bln yen to support the tourism industry.
The Eurozone saw growth for the first time in 6 months and we saw better than expected services and manufacturing data out of Germany despite a new third wave impacting the EU’s largest economy. The ifo Business Climate Index also improved betting expectations coming in at 96.6.
Early in the week, we saw the NZD plunge after the New Zeland Government announced measures will be taken to cool their roaring housing markets. The NZD tanked by 2.30% to the USD and the EURNZD came close to testing 1.7000 after the news hit the market.
Oil remand choppy with wide ranges. US stockpiles rose to 1.9M. A little bit of weird news, a super container ship remains stick in the Suez canal.
Bitcoin saw another lower week briefly moving below 50K USD. Price, for now, looks to be consolidating.
This week the UK and Europe move into daylight savings time. Oil could see some movement with OPEC-JMMC meetings on Thursday. We also have a partly shorter trading week with the Good Friday holidays to end the week. The Week ends with key U.S. employment data. Traders will be looking with interest at the unemployment rate, non-farm payrolls and average earnings.