Plan your strategies for the trading week ahead with key insights from our team.
Welcome to LCG’s look ahead to the key events in financial markets for the week starting May 1st, 2017.
Is Donald Trump’s tax plan just a tax cut for the rich? Rich investors don’t seem to mind with good tech stock earnings from Amazon and Alphabet helping the Nasdaq break 6000 for the first time last week. Alleviated tensions over the French election has seen the DAX hit a new record high while the FTSE has been lagging thanks to strength in the pound.
Both the pound and the euro have broken out above significant resistance levels as election fever boosts sentiment. Levels of 1.30 in GBPUSD and 1.10 in EURUSD are key. Last week the ECB talked down the inflation outlook but admitted growth is better, which will have a bearing on the interpretation of Eurozone Q1 GDP on Wednesday.
There is not expected to be any change in policy at this week’s FOMC meeting because there is no press conference to explain why. If anything the statement will probably indicate a June hike. NFP on Friday will help determine how likely a June rate hike is but overall the dollar is a bit mixed on the uncertainty around what Fed will do with its balance sheet.
The slump in the oil price suggests markets are running out of patience with OPEC as US inventories rise. Brent crude rebounded off $51 per barrel on Thursday on hints there will be an early announcement that OPEC will extend its output cuts. The rising risk of a war between the US and North Korea is keeping gold well bid.
Join Jasper Lawler and Rowena Harris-Doughty in the week ahead, as they discuss next week in the financial markets for forex, indices and commodities.