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Looking towards the Fed and BoJ to drive markets

Last updated: May 3rd, 2017 at 09:58 pm

Traders will be looking towards key central bank decisions this week with the Fed and the BoJ set to announce monetary policy and sure to drive market sentiment. After what seems to have been a sensible approach to the responses of central banks to the impact of Brexit, are we about to see a change of tack? The wait and see approach may be short lived as the first really decisive UK economic data released in the post-Brexit era shows a remarkable slowdown is in the offing. This will surely push the Bank of England into some sort of action next week. Last week, Monetary Policy Committee member Kristin Forbes advocated the need to see more data before the central bank decides to ease monetary policy, however there was a big indication last week that they may have to be more decisive. However, given that both the FOMC and the Bank of Japan are due to announce first, this ensures that markets will be volatile for the next two weeks at least. What could the Fed and the Bank of Japan announce this week and what sort of impact could they have? We also take a look at the other key economic announcements that will have a part to play on sentiment this week, with economic growth featuring strongly.

Yellen FOMC

We take a look at the outlook for the foreign exchange markets and how these central bank decisions could shape the moves. There is also a technical analysis of the key Euro/Dollar and Sterling/Dollar major pairs. With the rally on equity markets so strong recently, how are the indices looking ahead of such a key week? There is also technical analysis of the S&P 500 and also the FTSE 100. We round off with a look at the drivers of key commodity markets and sovereign bonds. We end with a technical analysis of Gold and Brent Crude oil.

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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.