UK: Weekly FX Market Update 3 April
Bank of England (BoE) Governor Bailey announces that the UK banking sector is well positioned to surmount any global banking worries.
With UK inflation at 10.4% can the BoE really be at the end of its rate hike cycle?
We have a Bank Holiday shortened week, with the US announcing jobs data when the UK is on holiday. Could this induce a volatile market?
Eurozone Core CPI was firm again last week, rising by 5.7%, a new record for the Eurozone. Does this news keep the ECB on course to hike again in early May?
ECB’s Muller stated that the ECB has ‘room to raise rates’ – a reason for further Euro bullishness?
The collapse of Credit Suisse was one step removed from the Eurozone. Has confidence in Europe’s banking sector been damaged?
EURUSD gained 3% in March. Can this positive sentiment now move into April and see price test resistance at 1.1035?
What will Non-Farm Payrolls bring this Friday, in a holiday affected market?
Personal Consumption Expenditure remained firm, rising by 4.4% from last year’s data.
Fed Vice-Chair Barr managed to calm the equity markets nerves last week with his testimony to Congress, however, the US Dollar has continued to weaken.
Has the recent US bank volatility caused a lasting loss of confidence in US banking & could this lead to US$ weakness?
Ellen Zenter, chief US economist at Morgan Stanley said, ‘You always have to worry about what evil lurks around the corner’.
Events for the week ahead:
Mon Apr 3
15:00 USD ISM Manufacturing PMI
Tue Apr 4
05:30 AUD RBA Cash Rate
10:15 GBP MPC Tenreyro Speaks
17:30 GBP MPC Pill Speaks
Wed Apr 5
03:00 NZD NBNZ Cash Rate
03:30 AUD RBA Lowe Speaks
15:00 USD ISM Services PMI
Thu Apr 6
13:30 CAD Employment Change
Fri Apr 7
All Day UK Bank Holiday
13:30 Average Hourly Earnings/Non-Farm Payrolls/Unemployment Rate