{"id":145410,"date":"2019-04-08T11:21:34","date_gmt":"2019-04-08T15:21:34","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=145410"},"modified":"2019-04-08T11:26:49","modified_gmt":"2019-04-08T15:26:49","slug":"weekly-market-outlook-focus-turns-to-ecb-meeting-fed-minutes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/weekly-market-outlook-focus-turns-to-ecb-meeting-fed-minutes\/","title":{"rendered":"Weekly Market Outlook: Focus Turns To ECB Meeting & Fed Minutes"},"content":{"rendered":"
April 8, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The week ahead is a bit slow with economic data taking a backseat. The main event risks this week will be the European Central bank\u2019s monetary policy meeting and the Fed meeting minutes. Brexit will remain in the headlines as the EU emergency summit is also due over the week.<\/p>\n

Data from the UK will see a mix of economic reports and Brexit related developments.\u00a0The monthly GDP figures from the UK are due this week including the manufacturing, industrial production, and construction output numbers.<\/strong>\u00a0The data is, however, unlikely to play a major role as the Brexit saga remains in the forefront. An emergency EU summit has been called to discuss the Brexit extension request from PM May.<\/p>\n

Data from the United States this week will see investors taking cues from\u00a0the FOMC\u2019s the March monetary policy meeting minutes<\/strong>. Amid Trump\u2019s pressures to cut interest rates and loosen monetary policy, the minutes will reveal details about the policy maker\u2019s deliberations on US interest rates. On the economic front, the inflation and producer prices data\u00a0<\/strong>will be coming up during the week.<\/strong><\/p>\n

A number of Fed members are also due to speak. The lineup includes Fed governors Clarida and Quarles and St. Louis Fed president, Bullard.<\/p>\n

Investors will also be keen to see how inflation fared in China.\u00a0<\/strong>Reports this week will cover the\u00a0annualized inflation and producer prices index for the month of March.<\/strong>\u00a0Expectations are optimistic showing that consumer prices might have risen during the month.<\/p>

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Data from the eurozone, with the exception of the EU summit and the ECB meeting, is fairly quiet.\u00a0The Eurozone Sentix investor confidence report, Germany\u2019s trade balance, and industrial production figures<\/strong>are all due over the course of the week.<\/p>\n

Here\u2019s a quick recap of what\u2019s to come in the currency markets this week.<\/p>\n

China Inflation and Trade Balance Figures<\/strong><\/h2>\n

The economic data from China this week will start off with the consumer prices and the producer prices data.\u00a0Headline inflation is forecast to rise by 2.4% on the year ending March 2019.<\/strong>\u00a0This marks a rebound from the 1.5% increase previously.<\/p>\n

Producer prices data is expected to rise at a modest pace of 0.4%<\/strong>\u00a0on the year ending March, following a 0.1% increase previously.<\/p>\n

The trade balance figures will be important. Previously, shipments from China fell 20.7% on the year in February, as an effect of the trade wars. For March,\u00a0exports are forecast to rise by 7.3%<\/strong>\u00a0while\u00a0imports are forecast to fall for the fourth consecutive month by 1.3%<\/strong>\u00a0on the year.<\/p>\n

As a result,\u00a0China\u2019s US denominated trade balance figures could rebound from 4.1 billion in February to 7.7 billion in March<\/strong>. The report comes as the\u00a0US and China trade talks continue<\/a>.<\/p>\n

ECB to Remain on the Sidelines<\/strong><\/h2>\n

The European Central Bank will be holding its monetary policy meeting this week on Thursday.\u00a0The meeting could be quiet, with no major surprises in store<\/strong>. All key interest rates will remain the same, unchanged.<\/p>\n

Investors will be keen to hear from the\u00a0ECB President Mario Draghi<\/a>\u00a0during the press conference. There have been\u00a0talks about the central bank introducing a tiered system for negative deposit rates<\/strong>. This view gains traction amid the risks of prolonged negative rates in the eurozone.<\/p>\n

Overall,\u00a0the ECB could take a less dovish stance than before<\/strong>. This partly comes with a rebound in the services PMI reports that saw upward revisions to previous data. Investors will be looking to the ECB for any dovish cues which could reflect in the euro\u2019s performance.<\/p>\n

Later in the day on Thursday,\u00a0the US Federal Reserve will also be releasing its monetary policy meeting minutes.<\/strong>\u00a0As a result, we can expect to see some volatility in the euro currency.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The week ahead is a bit slow with economic data taking a backseat. The main event risks this week will be the European Central bank\u2019s monetary policy meeting and the Fed meeting minutes. Brexit will remain in the headlines as the EU emergency summit is also due over the week. Data from the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-145410","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145410","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=145410"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145410\/revisions"}],"predecessor-version":[{"id":145424,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/145410\/revisions\/145424"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=145410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=145410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=145410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}