The Federal Reserve has done a remarkable change of course on monetary policy and one which leads to significant questions over its credibility and its future intentions. The extremely surprising dovish move has had significant ramifications across financial markets as the prospect of a weaker US dollar is now being priced in. The accommodative stance has implications for risk appetite and could even result in other central banks needing to react in response. As we find a less hectic economic calendar on the agenda for the week ahead, financial markets will continue to be impacted by the legacy of this unexpected retreat to a more accommodative monetary policy by the Fed.
So what else is in store to drive markets in the coming days and what has the calendar got in store? On a shortened week for the Easter holiday, in the absence of any significantly market moving tier one US economic data (or China for that matter), traders will be looking more towards data out of the Eurozone and UK. We look at the key events to watch out for.
We look at how the decision by the Fed should impact on Forex markets. The impact could have wide reaching implications across the major foreign exchange currencies. We also take a technical analysis look at the key markets of Euro/Dollar and Dollar/Yen to see how the price action is set up in the coming week.
How are equity markets set up moving into the new week and can this risk-on rally continue? What are the signals to look out for? There is also a technical analysis of the German DAX Xetra and the UK FTSE 100 Index. And finally we look at how the crucial commodities markets are looking and also what is happening in the bond markets. We finish with a technical analysis appraisal of Gold and Brent Crude oil.