Trade of the Week: Hawkish Fed could send USD index to two-year high
After weeks and months of speculation and volatility, FX markets are primed to react to the US Federal Reserve’s policy clues this week.
The Fed is due to issue its keenly awaited policy statement at 18:00 GMT today with Fed Chair Jerome Powell due to hold a press conference just 30 minutes after.
This Week: Ultra-hawkish Fed may exert more pain on FX world, global stocks
Watch out for major central banks with pivotal decisions alongside these major data releases and economic events in the coming days:
Monday, 2 May
Due to the upcoming Early May Day in UK and Labor Day from May 02-03 2022, there will be temporary changes to FXTM’s trading schedule.
Please refer to the table below for the schedule of all the instruments that are subject to changes. If your instrument isn’t mentioned below, that means normal trading will resume for it.
Due to the upcoming Anzac Day holiday on April 25 2022, there will be temporary changes to our trading schedule.
Please refer to the table below for the schedule of all the instruments that are subject to changes. If your instrument is not mentioned, that means normal trading will resume for it.
Week Ahead: Can USDJPY hit fresh 20-year high above 130?
Shifting expectations for the next policy moves by major central banks remain a key theme across global financial markets, as investors and traders digest these major data releases and events in the week ahead:
Monday, April 25
Tuesday, April 26
Why is the Yen so weak?
Two words: policy divergence (read on to find out more).
But first, let's take a look at just how dismal the Yen's performance has been so far in 2022.
The Japanese Yen is now trading around a 20-year low against the US dollar.
Last Tuesday, USDJPY posted its biggest single-day climb since November 2020, only to then take a breather for the time being.
(Note: weaker Yen versus the US dollar = USDJPY climbs higher).
Mid-Week Technical Outlook: FX Movers & Shakers
A volatile week ahead for financial markets?
Stocks in Asia traded cautiously on Tuesday, following a negative close on Wall Street overnight as growth concerns, inflation worries and geopolitical tensions hit risk sentiment. European markets opened lower this morning due to the deepening crisis in Ukraine, with the caution likely to find its way back to US markets this afternoon. In the currency space, the mighty dollar rose to a fresh two-year high during early trade, supported by rising treasury yields and Fed hike bets.
Trade of the Week: Gold set to breach $2000 again. What’s next?
As mentioned in our Week Ahead outlook (posted on Fridays), gold was expected to rise on a souring outlook for the global economy.
The precious metal duly started off the week by rising to within a whisker of the psychologically-important $2000 mark.
Week Ahead: Gold may climb higher on darkening global outlook
More Fed speak …
more US earnings …
and the freshest updates to the global economic outlook (via the latest IMF projection and GDP figure for China, the world’s second largest economy) …
Investors and traders can feast on these major data releases and events scheduled for the week ahead:
Monday, April 18
