This week’s Hot Topic is the Central Banks so let’s talk about what we should be watching out for…
With the European Central Bank doing little to clarify its policy outlook last week, the EUR/USD has remained uncertain.
European markets were left depressed as trader’s discounted Mario Draghi’s comments over further ECB stimulus measures which influenced the US markets in Friday’s session
The BoJ also rattled the financial markets on Friday with the Yen depreciating sharply following speculations that the central bank may implement negative rates on loans to bolster borrowing.
Ø Meanwhile, the Sterling surged last week as comments from Obama against a UK Brexit bolstered optimism that voters could be swayed against voting for an exit from the EU.
Next, the pound rose to its strongest level in more than two months against the dollar amid signs the “remain” camp is pulling ahead in the Brexit campaign.
Global stocks also may be rattled this week as major central banks meet to determine the next major moves in obtaining domestic stability, while quelling the concerns over the global economy.
While it is expected that the Fed may remain on the bench in April, investors should remember that depressed oil prices and central bank caution have attributed to stock market declines.
So, what’s coming up this week?
On Wednesday at 6PM GMT we have the FOMC Statement and also the Federal Funds Rate whose futures contracts are implying a 10% chance of a rate hike.
Meanwhile, the excitement continues as the Bank of Japan releases its Monetary Policy Statement on Thursday and is expected to announce new stimulus measures so be sure to watch the Yen
Lastly, on Friday Swiss National Bank Chairman Thomas Jordan is going to speak at the SNB’s General Meeting of Shareholders so keep an eye on the Swiss Franc.
