Weekly Report by FXPrimus! What’s happening this week in Financial Markets?

THIS WEEK’S INDICATORS

Last week the EURUSD reached a 6-Month high reaching 1.12105 backed on USD plummeting amid recent political turmoil.

Market participants turned to safe haven currency pairs such as the Yen, the Swiss Franc, Gold and commodity pairs in general, where they also focused on Euro bullish momentum owing to US Index 6-Month lowest decline and positive Eurozone political and economic developments.

Major pairs traded broadly stronger against the Dollar despite good U.S data.

Yen has been the risk-off choice for investors and finished the week stronger on Friday gaining on the Brazilian crisis.

MONDAY

Monday is relatively quiet with some information coming out on Eurogroup’s Meeting in Brussels.

A formal statement could be expected after its conclusion which may cause Euro related pairs to move stronger and provide opportunities to market participants.

TUESDAY

On Tuesday, there are a few important economic releases from Germany and the UK, this time with connection to Survey Data on the private sector and BOE MPC members’ votes respectively.

Investors may focus on the release of the German Business climate from Ifo, German Flash PMIs and major Inflationary Data on the economic outlook of BoE, as they are to create some volatility.

WEDNESDAY

A volatile Wednesday for Europe, Canada and the U.S where interest rate, inflation and economic health data are in play.

In Europe ECD President Mario Draghi is due to speak at the First Conference on Financial Stability in Madrid, Spain.

The BoC is to publish a Monetary Policy Statement outlining the economic conditions and factors that influenced their decisions as well as announce its benchmark Interest Rate.

The U.S report on Home Sales could have some impact in the markets however more of the moves are to occur during Fed’s release of the latest minutes on Monetary Policy as well as the Crude Oil Inventories release later.

THURSDAY

Another important day in the week for the UK.

On Thursday, the UK is to release the 1st quarter revised GDP data (second estimate) on the UK’s economic growth and preliminary data on Total Business Investment.

The US weekly release of Unemployment Claims makes Thursday a good day for trading as the OPEC meeting is also taking place.

FRIDAY

The closing off this week is relatively quiet as well. On Friday, some volatility is expected around the release of the Durable Goods Orders and the revised 1st quarter GDP data on the first quarter growth and consumer sentiment.

MARKET MOVERS SUMMARY

An important week with Thursday’s OPEC Meeting decision on current production cut being the major economic release and prime mover.

On Wednesday market participants are to anticipate the Fed’s latest Policy Meeting minutes for a hint on the timing of a US rate hike, along with Friday’s US growth data.

Last week’s 2.12% decline on the US Dollar Index through 97.00 has been the worst since last July as investors seem to have lost confidence in the “Trump Trade”, highlighting the importance of the Fed’s decision. Equally, on Tuesday and Thursday traders can look at UK growth data as an indication of the country’s economic health and the degree of the impact of the decision to leave the EU.

In Europe, investors’ focus is on preliminary and PMI data on Tuesday as it provides insightful hints on the ECB’s intention to withdraw stimulus from its current light-weighed monetary policy.