Forecasting the Coming Week: Fedspeak and FOMC Minutes should rule the sentiment

Source Fxstreet
May 17, 2024 15:40

The Greenback lost further ground and dropped to multi-week lows on the back of rising expectations of interest rate cuts by the Fed, a view that was further reinforced by lower US CPI data in April

The Greenback remained on the back foot and dragged the USD Index (DXY) to the 104.00 zone amidst an equally downward move in US yields. Weekly Mortgage Applications, Existing Home Sales and FOMC Minutes are all due on May 22. The usual weekly Initial Jobless Claims, the Chicago Fed National Activity Index, New Home Sales and flash Manufacturing and Services PMIs come on May 23, while Durable Goods Orders and the final Michigan Consumer Sentiment are expected on May 24.

EUR/USD maintained its uptrend well in place, advancing for the fifth week in a row and flirting with the key 1.0900 barrier. Germany’s Producer Prices are due on May 20, while EMU Balance of Trade is expected on May 21. On May 23, the advanced Manufacturing and Services PMIs in Germany and the euro bloc and the flash Consumer Confidence gauge in the euro zone will be unveiled. On May 24, the final Q1 GDP Growth Rate in Germany is due.

GBP/USD extended its march north beyond the 1.2700 mark for the first time since mid-March. In the UK docket, the CBI Industrial Trends Orders are due on May 21, seconded by the Inflation Rate and Public Sector Net Borrowing on May 22. May 23 will see the preliminary Manufacturing and Services PMIs, while Retail Sales and the GfK Consumer Confidence are due on May 24.

USD/JPY traded in a choppy fashion, eventually ending the week with marginal losses around 155.50. The Tertiary Industry Index is due on May 20 ahead of the Reuters Tankan Index, Balance of Trade and Machinery Orders all expected on May 22. On May 23, there will be the weekly Foreign Bond Investment and flash Jibun Bank Manufacturing and Services PMIs. The Inflation Rate will close the week on May 24.

AUD/USD resumed the uptrend and closed the week with marked gains, managing to finally surpass the key 0.6700 barrier. On May 21, the Westpac Consumer Confidence Index and the RBA Minutes are due. The flash Judo Bank Manufacturing and Services PMIs are expected on May 23 along with Consumer Inflation Expectations.

Anticipating Economic Perspectives: Voices on the Horizon

  • Fed’s Powell speaks on May 19.
  • Fed’s Bostic, Barr, Waller and Jefferson speak on May 20 along with BoE’s Broadbent.
  • Fed’s Bostic, Barkin, Williams, Waller and Barr speak on May 21. In addition, ECB’s Lagarde, BoE’s Bailey and US Treasury Secretary Yellen are also due to speak.
  • Fed’s Bostic, Collins and Mester speak on May 22 seconded by BoE’s Breeden.
  • Fed’s Bostic and BoE’s Pill are due to speak on May 23.
  • Fed’s Waller and SNB’s Jordan speak on May 24.

Central Banks: Upcoming Meetings to Shape Monetary Policies

  • The PBoC holds its meeting on May 20.
  • The Hungarian central bank (NBH) meets on May 21.
  • The Bank Indonesia (BI) will meet on May 22 along with the RBNZ.
  • The Bank of Korea (BoK) and the CBRT meet on May 23.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Tesla shareholders back Musk pay package, Adobe's outlook - what's moving marketsInvesting.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NA
Author  Investing.com
Investing.com -- U.S. stock futures were mixed on Friday, after a streak of record high closes for the S&P 500 and Nasdaq Composite stretched into a fourth straight session. In a victory for Tesla (NA
placeholder
Gold trades in familiar territory amid mixed signals from US economyGold (XAU/USD) trades marginally higher on Friday, exchanging hands just above the $2,300 mark during the early European session.
Author  FXStreet
Gold (XAU/USD) trades marginally higher on Friday, exchanging hands just above the $2,300 mark during the early European session.
placeholder
EUR/USD weakens as French election uncertainty, Fed’s hawkish narrative weighEUR/USD extends its downside below the round-level support of 1.0700, touching the lowest level in more than a month during Friday’s European session.
Author  FXStreet
EUR/USD extends its downside below the round-level support of 1.0700, touching the lowest level in more than a month during Friday’s European session.
placeholder
Investment banks lift Broadcom price targets after strong resultsInvesting.com - Broadcom (NASDAQ:AVGO) released impressive quarterly results earlier this week, and a number of investment banks have responded positively, raising their price targets as a result.The
Author  Investing.com
Investing.com - Broadcom (NASDAQ:AVGO) released impressive quarterly results earlier this week, and a number of investment banks have responded positively, raising their price targets as a result.The
placeholder
US Dollar rallies in flight for safety out of Europe’s political turmoilThe US Dollar (USD) rallies on Friday as traders flee out of the Japanese Yen (JPY) and the Euro (EUR). The renewed strength in the Greenback comes as sovereign bond yields in some countries in the Eurozone, particularly France, are spiking on the
Author  FXStreet
The US Dollar (USD) rallies on Friday as traders flee out of the Japanese Yen (JPY) and the Euro (EUR). The renewed strength in the Greenback comes as sovereign bond yields in some countries in the Eurozone, particularly France, are spiking on the
goTop
quote