A Week in the Market: US GDP and Cautious BoJ (25 – 29 April)

A Week in the Market: US GDP and Cautious BoJ (25 – 29 April)

This week is not going to be super active but this is normal for the end of the month. However, investors will definitely find things to pay attention to.

USD: support from statistics will do only good

USD: support from statistics will do only good

Firstly, Conference Board CCI for April and US GDP for Q1 are worth taking a look at. Expectations are that the economy has expanded by just 1%. And the better the results, the more support the USD will get.

Bank of Japan: hoping for a miracle

Bank of Japan: hoping for a miracle

The Japanese regulator will gather for a meeting.The time for dramatic changes in the monetary policy has not come yet, so the interest rate will remain below zero. However, the market can easily get interested in inflation assessments and the BoJ opinion about JPY devaluation. Tougher comments of the regulator can hold the yen back from further declining.

GBP: hoping to stabilise

GBP: hoping to stabilise

Great Britain is not really active on the macroeconomic calendar. However, it will still present CBI retail sales statistics for April and housing prices. The GBP remains somewhat depressed but any good news can stabilise it.

AUD: growth is possible

Inflation statistics in the country can give a signal for soon toughening of the credit and monetary policy of the Reserve Bank of Australia. The CPI in Q1 might have sped up from 1.3% to 1.7% q/q. Hopes for an upcoming increase in the interest rate can support the AUD.

Brent: suppressed by coronavirus

Brent: suppressed by coronavirus

An excessively long quarantine in Shanghai and constantly happening new outbreaks of the disease keep cutting down on the demand for fuels and influence market oil prices. Reaction to weekly reports on oil reserves in the US are now quite restrained, however, statistics should not be utterly neglected. The seasonal decline of oil reserves can support Brent prices.