- FOMC minutes to be released on Wednesday
- Will hard data confirm improvement in Chinese PMIs?
- Factory orders data expected to show a drop in February
April has started in brilliant moods despite mixed data from the global economy. Can this sentiment stay with us for longer? FOMC minutes as well as trade data from the Chinese economy could provide an update on the matter later this week. When it comes to Monday, the focal point is the release of the revised US durable goods orders for February (3:00 pm CET). However, as it is usually the case for revisions, no major price moves should be expected.
What to watch for the remainder of the week?
FOMC minutes (Wednesday, 7:00pm CET)
There is no doubt that a softer approach from the Fed is one of the key reasons behind strong equity markets this year. The release of minutes will shed more light on the Fed’s plans as traders are wondering if the central bank could consider cutting interest rates. Affected markets: US500, USDJPY.
Trade data from China (Friday)
An improvement in the Chinese PMI was a prime reason behind a stock market rally in the first week of April - now it’s time for hard data to confirm that direction and thus a report on trade will be closely watched by traders. Affected markets: AUDUSD, Copper.
Data from the oil market (Wednesday, 4:30 pm CET)
A strong rebound of oil inventories in the US did not stop prices from rising further as markets are concerned about the OPEC supply. Inventories will be watched as a short term indicator and traders will use the DOE report to assess if the bull market can persist. Affected markets: OIL, OIL.WTI.
Oil prices surged on Friday pushing both Brent and WTI to new all-time highs. WTI (OIL.WTI) is trading slightly below the $64 handle, a level that saw some price action throughout the 2018. Note that as crude prices rose almost 50% so far this year, one cannot rule out the possibility of the steep correction occurring sometime soon. Source: xStation5