The Week Ahead – Its All Eyes on the Fed, with the BoE also in Focus

div classBodysc17zpet90 cdBBJodivh2 idonthemacrostrongOn the Macrostrongh2

pIt is a busy week ahead on the a hrefhttps:www.fxempire.comtoolseconomiccalendareconomic calendara, with stats 68 due out through the week ending May 6. In the week prior, 56 stats were in focus.p

h3 idforthedollarFor the Dollar:h3

pIt is a big week ahead. On the economic data front, ISM survey PMIs will influence this Monday and Wednesday, with Wednesdays ISM NonManufacturing PMI the main driver.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe US labor market will also be in focus, with the ADP nonfarm employment change figures and official nonfarm numbers due out on Wednesday and Friday.p

pThe main event of the week, however, is the FEDs monetary policy decision. A larger than expected rate hike will spook the markets.p

pIn the week ending April 29, 2022, the Dollar Spot Index surged by 1.72 to end the week at 102.959. In the week prior, the Index rose by 0.72 to 101.22.p

h3 idfortheeurstrongFor the EURstrong:h3

pOn Monday, manufacturing PMIs and German retail sales will draw interest ahead of German unemployment figures on Tuesday.p

pOn Wednesday, the market attention will shift to service sector PMIs, German trade data, and Eurozone retail sales.p

pOver the remainder of the week, the German economy will remain in the spotlight. On Thursday, German factory orders are due out ahead of industrial production figures on Friday.p

pFor the week, the a hrefhttps:www.fxempire.comcurrencieseurusdEURa slumped by 2.27 to 1.0545. In the previous week, the EUR fell by 0.19 to 1.0790.p

h3 idforthepoundFor the Pound:h3

pIt is a relatively quiet week, with economic data limited to finalized private sector PMI numbers. Expect any revisions to the services PMI to have a greater influence.p

pFollowing last week‘s tumble, however, the Bank of England monetary policy will be the Pound’s key driver.p

pIn the week, the a hrefhttps:www.fxempire.comcurrenciesgbpusdPounda tumbled by 2.07 to end the week at 1.2573. In the week prior, the Pound slid by 1.69 to 1.2839.p

h3 idfortheloonieFor the Loonie:h3

pMidweek, trade data will draw interest ahead of employment figures due out on Friday.p

pOn Friday, Ivey PMI numbers for April should have a muted impact on the Loonie.p

pIn the week ending April29, the a hrefhttps:www.fxempire.comcurrenciesusdcadLooniea slid by 1.09 to C1.2848 against the Greenback. In the week prior, the Loonie fell by 0.79 to C1.2710.p

divdivdiv classBodysc17zpet90 cdBBJodivh2 idfromtheasiapacificFrom the Asia Pacifich2

h3 idfortheaussiedollarFor the Aussie Dollar:h3

pIt is a busy week ahead. Key stats include manufacturing numbers on Monday ahead of retail sales and trade data on Wednesday and Thursday.p

pWhile the stats will influence, the RBA monetary policy decision and rate statement will be the key drivers. A largerthanexpected rate hike or the talk of a more aggressive rate path trajectory would support an Aussie Dollar breakout.p

pAt the end of the week, the RBA will also release its Statement on Monetary Policy.p

pIn the week, the a hrefhttps:www.fxempire.comcurrenciesaudusdAussie Dollara tumbled by 2.53 to 0.7061.p

h3 idforthekiwidollarFor the Kiwi Dollar:h3

pOn the economic data front, labor market conditions will be in focus. Employment change figures for Q1 and New Zealands unemployment rate will be the key stats of the week.p

pOn the monetary policy front, the RBNZ will release its financial stability report on Wednesday and hold a press conference that will likely be the main event of the week.p

pThe a hrefhttps:www.fxempire.comcurrenciesnzdusdKiwi Dollara ended the week down 2.73 to end the week at 0.6458.p

h3 idforthejapaneseyenFor the Japanese Yen:h3

pIt is a quiet week ahead, with stats limited to finalized private sector PMIs and inflation.p

pWe dont expect the numbers to influence, however, leaving the Yen in the hands of monetary policy divergence.p

pThe a hrefhttps:www.fxempire.comcurrenciesusdjpyJapanese Yena fell by 0.93 to end the week at ¥129.70 against the Dollar.p

h3 idoutofchinaOut of Chinah3

pIt is another quiet week ahead, with service PMI numbers for April due out on Thursday. Following last weeks assurances of economic support, the markets will be more interested in any chatter from Beijing on how to boost economic activity.p

pPrivate sector PMIs from the weekend reflected the need for policy support.p

pIn April, the Caixin Manufacturing PMI fell from 48.1 to 46.0, with the NBS Manufacturing PMI declining from 49.5 to 47.4.p

pIn the week ending April29, the Chinese Yuan slid by 1.65 to CNY6.6085. The Yuan tumbled by 2.04 to CNY6.5014 in the week prior.p

h2 idgeopoliticsGeoPoliticsh2

pRussia and Ukraine will remain the area of focus in the week ahead.p

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