The Week Ahead – Stats and Earnings to Drive the Majors

In a shortened week ahead, economic data and earnings will be the key drivers. Stats will need to really impress to shift sentiment towards FED policy.
Bob Mason
Arms trade business concept.

On the Macro

For the Dollar:

It’s a busy week ahead. Through the first half of the week, key stats due out of the U.S include NY Empire State manufacturing, industrial production and trade data.

In the latter part of the week, key stats include retail sales and private sector PMI numbers, due out on Thursday.

Building permits and housing starts due out on Friday will have less of an impact, with Thursday’s stats likely to have the greatest influence.

The Dollar Spot Index ended the week down 0.43% to $96.972.

For the EUR:

Economic data includes economic sentiment figures out of Germany and the Eurozone on Tuesday, which are released ahead of the Eurozone’s finalized inflation figures and trade data due out on Wednesday.

In a shortened week, Thursday’s prelim April private-sector PMI numbers will be the key driver. The focus will be on Germany’s manufacturing and the Eurozone composite.

The EUR/USD ended the week up 0.74% to $1.1299.

For the Pound:

It’s a busier week than normal. Employment figures on Tuesday, inflation figures on Wednesday and retail sales figures on Thursday will have a material impact on the Pound.

With Brexit now extended through to 31st March, the BoE’s hands are likely tied for a little while longer. That should leave the Pound somewhat less sensitive to the inflation numbers this week.

The GBP/USD ended the week up 0.28% at $1.3074.

For the Loonie:

Key stats include trade and inflation figures due out on Wednesday and retail sales figures due out on Thursday.

Ahead of the stats, the BoC will also release its Business Outlook Survey on Monday. Of less influence will be foreign securities purchases and manufacturing sales figures due out on Tuesday.

Outside of the numbers, market risk sentiment and impact on crude oil prices will continue to be a factor.

The Loonie ended the week up 0.46% to C$1.3323 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s a relatively quiet week ahead. Key stats are limited to March employment figures and business confidence figures due out on Thursday.

Outside of the numbers, the RBA will release its monetary policy meeting minutes, which will need to be considered. Expectations are for the RBA to cut rates later in the year, the markets will be looking for clues…

Stats out of China will also need to be factored in, with GDP and industrial production figures due out on Wednesday.

The Aussie Dollar ended the week up 0.96% to $0.7173.

For the Japanese Yen:

It’s a relatively busy week ahead. March trade figures and February industrial production figures are due out on Wednesday. On Thursday, prelim manufacturing PMI numbers are due out ahead of inflation figures on Friday. We can expect the trade figures to be of greatest influence mid-week.

The Japanese Yen ended the week down 0.26% to ¥112.02 against the U.S Dollar.

For the Kiwi Dollar:

Another quiet week ahead leaves 1st quarter inflation figures due out on Wednesday to provide direction.

While market risk sentiment will influence throughout the week, softer inflation figures could lift expectations of a near-term rate cut.

The Kiwi Dollar ended the week up 0.49% to $0.6763.

Out of China:

Key stats due out include fixed asset investment, 1st quarter GDP, industrial production and retail sales figures. All the stats are due out on Wednesday and will have a material impact on market risk appetite, particularly the GDP numbers.

Geo-Politics

U.S – China Trade War:  Progress will likely see Trump’s attention divert to Japan and the EU. GDP numbers out of China on Wednesday could reignite concerns over a possible collapse in talks, however. Tariffs remain in place in spite of the progress, which will remain a drag.

Brexit: The EU’s Brexit extension to 31st October now leaves Britain in limbo for another 6-months. Can Theresa May survive the backlash and get enough support for a way out of the EU or will it be General Elections and a possible 2nd EU Referendum? Parliament is in recess until 23rd April that will keep her safe for now. In spite of the Easter break, cross-party talks are expected to continue in the week.

The Rest

On the monetary policy front,

For the AUD, the RBA monetary policy meeting minutes are due out on Tuesday. The rate statement gave very little indication of a possible rate cut later in the year. The minutes could deliver the much-needed detail…

U.S Corporate Earnings:

The focus early on remains in the financial sector. Key earnings releases through the week include those for Citigroup (Monday); Goldman Sachs (Monday); Bank of America (Tuesday); Netflix Inc. (Tuesday); Morgan Stanley (Wednesday); and American Express (Thursday).

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US