This week, it is easier to enter a special flow ahead of the end of the month, the end of the quarter, and the end of the term. After completing the financial authorities’ response to the financial instability, it looks like the immediate measures have been taken. However, uncertainty over vulnerable financial institutions has not disappeared. On a daily basis, the flow of the market fluctuates little by little in each market.
The March Eurozone Consumer Price Index and Preliminary Estimates and February US PCE Deflator will be announced this weekend. It is an important inflation indicator that the US and European financial authorities pay close attention to. Both are expected to show a slowing trend in headline inflation growth. However, the slowdown in core inflation is not yet clear, and there is even the possibility that growth will accelerate. This is the so-called highly sticky inflation situation.
Due in part to the impact of financial instability, the market’s outlook for interest rates is dominated by the view that interest rates are nearing the peak. In the U.S., markets are pricing in the possibility of a rate cut this year, although the FOMC has denied it. Market sentiment is likely to be affected by whether inflation indicators show a smooth slowdown trend.
This week, the market is trending in a range. It is assumed that the major trend will continue to be dollar selling.
