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Markets prepare for hectic data week: What can we expect from the majors?

business-articlesMarkets prepare for hectic data week: What can we expect from the majors?
  • USD: Outlook positive – US consumer confidence expected to remain high
  • EUR: Outlook negative – Eurozone inflation expected to remain weak
  • JPY: Outlook mixed – North Korea de-escalation threatens to raise risk appetite
US dollar (USD) favours bulls – Consumer confidence expected to rise

This week is a big one for US ecostats, with investors preparing to sit down for a proverbial feast of data that will include today’s consumer confidence results, Wednesday’s US GDP figures for Q1, Thursday’s personal spending figures and, finally, Friday’s raft of payroll and labour market results.

Today, however, will only feature the consumer confidence readings, with an expected rise liable to keep the US dollar in bullish form.

Investors ultimately favour the ‘Buck’ thanks to hawkish sentiment at the US Federal Reserve.
Robust data will simply up the ante.

German inflation and unemployment readings on the horizon – What can we expect for the euro?

Today is, once again, a rather quiet data day for the bloc, but investors are keeping a close eye on the political situation in Italy whilst also preparing for tomorrow’s looming raft of German ecostats.

These will include Germany’s unemployment rate and consumer price inflation readings for May.

Analysts will be looking to assess whether Germany’s questionable economic performance in Q1 has extended into Q2, with a disappointing result liable to keep the euro under pressure.

Japanese yen (JPY) outlook darkens as risk appetite rises

The Japanese yen encountered volatility last week when US President Donald Trump announced the cancellation of the highly anticipated summit with North Korean leader Kim Jong Un.

This rise was negated however, by the seemingly hospitable North Korean response, which illustrated that Kim Jong Un remains open to a summit still taking place.

Since then, President Trump has echoed that talks in some form could still go ahead as planned; easing global tensions and prompting a fresh rise in risk appetite amongst the markets.

This is bad news for the Japanese yen (JPY), which traditionally benefits from global tensions because of its status as a safe-haven currency.

Looking ahead, investors will be keeping a close eye on relations between the two nations, with the US-China trade negotiations also liable to bolster or limit demand for the Japanese yen.

Upcoming data

15:00 USD – US Consumer Confidence (May)
15:30 USD – US Dallas Fed Manufacturing Index (May)
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

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