Today, we will be monitoring the market trends in the UK and US following their extended weekend. The US stock market will be a key focus. After last week’s strong earnings report from US semiconductor giant Nvidia, there is a sense that the positive momentum might have peaked. It remains to be seen if the market will continue its strong performance. In the forex market, while USD/JPY is experiencing some adjustment, overall, cross-yen pairs are showing strength alongside a weaker dollar. The continued impact of risk appetite-driven yen depreciation will be tested.
Upcoming economic indicators in the overseas markets include:
Canada Industrial Product Price Index (April)
US House Price Index (March)
US S&P Case-Shiller Home Price Index (20 cities) (March)
US Conference Board Consumer Confidence Index (May)
As the London market resumes after the long weekend, there are no significant UK economic statistics scheduled for release. Economic data from Germany, Canada, and the US are not expected to be major market movers.
In terms of events, the ECB Consumer Inflation Expectations (April) will be in focus. While a June rate cut by the ECB is already anticipated, the next steps remain uncertain for both the market and policymakers. Changes in inflation expectations might provide some clues.
Scheduled speeches by financial officials include:
Centeno, Governor of the Bank of Portugal
Knot, President of the Dutch Central Bank
Kashkari, President of the Minneapolis Fed
Cook, Fed Governor
Daly, President of the San Francisco Fed
Other notable events include the US Treasury auctions of 2-year ($69 billion) and 5-year ($70 billion) notes, which will provide cues for the dollar as the US bond market reopens.
This week has started with a weaker dollar. However, with rate cuts becoming more distant, it is uncertain if this trend will continue. Focus will be on the movements following the US Conference Board Consumer Confidence Index release.
