What are the important market events of the day?
This article is originally referred from IronFX News.
RBA Expected to remain on hold
- RBA is to announce it’s interest rate decision tomorrow morning and is expected to remain on hold at +1.50%.
- Current AUD OIS imply a probability for the bank to remain on hold at 99.59%.
- Market’s focus expected to shift to the accompanying statement and we see the case for the bank to have a rather dovish tone as inflation has remained unchanged at +1.9% and household spending seems to continue to be a concern.
- Should there be a dovish statement the market may react negatively and the AUD could weaken.
Bitcoin goes mainstream?
- Bitcoin seems to start settling down after a rather busy week.
- Media suggest that a number of large institutional investors seem to be preparing to invest in the cryptomarket within the next 6-12 months.
- On the other hand, regulations seem to be tightening, as a number of crypto exchanges eye Malta for their seat.
- Should there be further positive headlines for the crypto market, we could see a moderate rise of Bitcoin’s value.
Today’s other economic highlights
- Germany: Retail Sales for March, Survey: +0.8% mom Prior: -0.7% mom, 06:00 (GMT), could strengthen the EUR
- Preliminary HICP for April, Survey: +1.5% yoy Prior:+1.5% yoy, 12:00 (GMT), could weaken the EUR
- US: Core PCE Price Index for March, Survey: +1.8% yoy Prior:+1.6% yoy, 12:30 (GMT), could strengthen the USD
As for the week ahead
- Tuesday: RBA’s interest rate decision, Canada’s GDP for February and US ISM Mfg PMI for April
- Wednesday: New Zealand’s employment data, China’s Caixin Manufacturing PMI for April, Eurozone’s preliminary CPI for April and Unemployment rate for March, US ADP Employment Data and the Fed’s Interest rate Decision.
- Thursday: Norge’s Bank interest rate decision, the UK Service’s PMI for April, Eurozone’s preliminary CPI rate for April and the US ISM Non Mfg PMI for April
- Friday: US Employment Report (NFP Friday) for April.
Original Source: IronFX News