The US dollar declined for the fourth week in a row

Inflation from Australia and the Eurozone are the most important events of the week’s

session Consumer spending index is at the top of investors’ interests

Separate economic data

After the meeting of the US Federal Reserve and the meetings of the Bank of England and the National Bank topped the events of last week, the financial markets return in a new week and new economic figures that will cast a shadow over the trading of the current week, but they are less calm compared to last week, as inflation figures from Australia and the eurozone topped, in addition to some separate numbers, and before we stop limping Here we will summarize the most important events of the past week.

At the beginning of the week, inflation figures from the United Kingdom for the month of February came in higher than expected. Inflation in the United Kingdom rose to 10.4% in February (fayezalajmi-4x.com)

Wednesday, the markets witnessed the first expected central bank meeting, as the US Federal Reserve raised interest rates by a quarter of a point, and the Federal Reserve raises interest rates by 25 basis points (fayezalajmi-4x.com)

The Swiss National Bank raised interest rates by 50 basis points at Thursday morning’s meeting The Swiss National Bank raises interest rates by 50 basis points (fayezalajmi-4x.com)

The Bank of England, in turn, raised interest rates by 25 basis points The Central Bank of England raised interest rates by 25 points (fayezalajmi-4x.com)

We ended the week with US durable goods orders numbers, which came in below expectations. Durable goods orders contracted in January by 1.0% (fayezalajmi-4x.com)

The general index of the US dollar recorded losses for the fourth week in a row, by 0.70% last week, to conclude the weekly session at 102.78 levels, after testing 101.55 levels in the middle of the week, as the US dollar was affected last week by rising expectations that the US Federal Reserve’s hike last week would be the last hike in interest rates in This series and that we witness a reduction in interest in the second half of this year.

What will we watch this week?

Attention is directed during the sessions of this week to many economic data that will have a direct impact on currency movements, as inflation numbers from Australia and the eurozone, in addition to inflation figures represented by the PCE consumer spending index, the preferred indicator of the Federal Reserve, lead the events of this week.

Australia

Australia will announce inflation figures for February next Wednesday morning, as it is expected to stabilize at the highest levels of 7% after rising to 7.4% in January compared to 8.4% in December, as the Reserve Bank of Australia hopes that levels of 8.4% in December will be the peak rates Inflation and now the slowdown continues at a good pace.

The Reserve Bank of Australia indicated in its last meeting that it is expected to temporarily stop raising interest rates to monitor the developments of the previous hike, and it will support Wednesday’s figures if they are in line with expectations or not. Australia will also announce tomorrow, Tuesday, in the Asian session, that retail sales are expected to grow by 0.4% in March, compared to 1.9% in January.

United States of America

In its last meeting, the US Federal Reserve reiterated that it will look at economic data to determine its next policy, and on top of these data will be inflation numbers, as markets await inflation numbers for consumer spending, which is the Fed’s favorite indicator for measuring inflation, which will be released at the end of the week, Friday. Expectations indicate that the index will decline to 0.4% from 0.6% in February on a monthly basis, to decline to 5.3% on an annual basis from 5.4%, and for the main index to decline to 4.4% from 4.7%.

The expectations of the markets and the Federal Reserve now differ in the future of interest rates, as the Federal Reserve and its members, according to the last meeting last week, see that there is another hike in interest rates coming by 25 basis points, while it does not see any reduction in interest rates in the current year.

On the other hand, the futures markets see that we may be at Interest rates currently peak at 5% and see a rate cut in June of more than 60%. Inflation figures on consumers’ horizons may give some clarification to the markets and bring them closer to the different points of view, in addition to the members’ statements that the markets are looking forward to during the current week.

Fed members Christopher Waller, Lisa Cook, Jefferson, Suzanne Collins, and Tom Parkin are expected to speak during the current week, and the markets will monitor these statements with some interest, especially since they are the first after the last meeting of the Fed.

The United States of America is also expected to release US Consumer Confidence, Pending Home Sales, revised GDP growth, and weekly jobless claims during the week.

Euro-zone

The euro zone will announce an inflation reading at the end of this week’s trading on Friday, preceded by about 24 hours by inflation numbers from Germany and Spain. Inflation in the Eurozone is expected to slow to 7.1% in the preliminary reading for March compared to 8.5% in February, while core inflation is expected to rise to 5.7% from 5.6%

. The European Central Bank raised interest rates by 50 basis points in its meeting the week before last, and the statements differed regarding the future of monetary policy, especially after the banking crisis that began to loom on the horizon recently, and therefore the markets will monitor Friday’s numbers to build an idea of what is to come.

European Central Bank President Christine Lagarde is also expected to speak in Frankfurt on Tuesday, while German Central Bank President Nagel will speak on Monday.

Risk appetite moves the markets

Market trading is still dependent on fluctuations in the banking sector and the appetite for risk, between the rise and decline of fears. Therefore, it is necessary to monitor what is happening in the banking sector, given that it directly affects the currencies and assets of safe havens and currencies of high risk.

Separate data that we follow during the week

Monday Ifo index of business climate from Germany. Remarks to the Governor of the Bank of England, Bailey.

Tuesday Retail sales from Australia. US trade balance. US Consumer Confidence Index. Manufacturing Index of Richmond.

Wednesday Inflation figures from Australia. US home sales. Crude oil stocks.

Thursday Inflation figures from Germany and Spain.

Final reading of gross product growth. local from America. US weekly unemployment benefits. Friday manufacturing pmi figures from china Eurozone inflation. Growth figures from Canada. US consumer inflation index (PCE)