A huge week for economic numbers and central bank decisions…
The week ahead could prove exceptionally important for a number of currencies as key data releases mixed with central bank decisions are all scheduled for release. In particular, focus will be on the pound and the US dollar.
Domestically, the turn into a fresh month means we’ll have the usual 3 monthly PMI reports set for release. Wednesday will see a manufacturing print while Thursday and Friday will see construction and service sector reports. Outside of this, a lot of attention will be paid to another performance from the Bank of England via its ‘Super Thursday’ monetary policy event. The day will see the Bank decide on interest rates with a likely status quo to remain unchanged. The most important part for markets will stem from the accompanying inflation report, statement and press conference from Mark Carney. With Brexit dragging on, it’s anticipated there won’t be too much new from the Bank, however, the continued resilience in the economy cannot be ignored.
From the US, it’s time for another monthly jobs report and Federal Open Market Committee decision. The US is set to add another 180K jobs in the month of April, which would be another impressive report. The Fed decision should be an interesting one on Wednesday following last week’s GDP print. The report smashed expectation showing an annualised pace of growth of 3.2%. An exceptional level of growth given the current general global weakness. As a result, the Fed will have to think about how they approach this decision. They’ve already juiced US stock markets back up to all-time highs, with many other world markets following closely. It’s hard to see the Fed being dovish in such a situation, the result being more support for an already strong US dollar.
Written by Viv Savani. 10:56am, April 29th 2019
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