We have seen some rather weak economic pointers of
late, although the nonfarm payrolls report still surprised to
the upside. But what about GDP? If we see weakness in
the economy then investors may start betting that the Fed
will not only stop hiking interest rates past May, but soon
it may even start loosening monetary policy again.
What to watch:USD, wall street
US CPI cooled to 5% annual rate, which was more than
expected. There's been more signs of inflation heading lower.
Yet the hawks at the FOMC camp want to see more evidence
before pausing rate hikes. The Core PCE Price Index is the
Fed's favorite measure of inflation. So, a weaker print could
send dolar plunging.
What to watch: USD, Gold
This will be the first policy meeting under the leadership of the new Bank of Japan Governor, Kazuo Ueda. Given that Ueda has already mentioned that he will continue with the BOJ's current policy stance, the yen has weakened across the board. But be mindful of any potential surprises with regards to the BOJ's yield curve control(YCC) settings. What to watch:JPY, Japan 225
Please note that foreign exchange and other leveraged trading involved significant of risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary
Contracts for Difference(CFDs) are not available to US residents
© 2023 Demo.com