This week’s edition of the IFX Market Update covers…
The latest progress in US trade negotiations, some predictions for the week ahead and more.
Current rates
| Currency pair | Rate |
|---|---|
| eur usd | 1.1349 |
| gbp eur | 1.1762 |
| gbp usd | 1.3298 |
Rates correct as of 08:28 on Monday 28 April but may now have changed.
The Big 3
Three stories covering the latest developments in economies, currencies and borders.
Asian economies leading the way in US trade negotiations
Talks are underway with many Asian economies, including South Korea, Japan, and India, to reach trade agreements. Compared to other western economies they’re leading the way in trade negotiations with the Trump administration, due to their exports facing high US tariffs. Even to get smaller, interim accords would be seen as a marginal success by Trump for his trade policy. US and China remain at an impasse despite indications from him that he has spoken to Xi Jinping.
Markets likely to shift ahead of quarterly earnings
Global markets rebounded last week amidst admittedly fragile reports of de-escalation in the US-China trade war. This week a combination of quarterly earnings reports from major US technology companies, including Meta, Microsoft, Amazon, and Apple and Eurozone inflation figures will likely cause further rumblings.
[MSN]
Trump and Fed relationship on thin ice despite reprieve
Trump has made clear his dissatisfaction with Federal Reserve chairman Jerome Powell and his handling of the economy. Tensions did get a much-needed blast of cold-water last week, when Trump, seemingly in response to a market slide, denied previous reports that he had any intention of firing Powell. Equity index futures jumped by nearly 2% in response. Nonetheless, Trump's criticisms of the Fed's activity remain, and the fight is far from over.
[BBC]
Recap
Last week the International Monetary Fund released a statement saying, the world economy is at a "pivotal juncture" due to trade tensions.
“Following several years of rising concerns over trade, trade tensions have abruptly soared, fuelling elevated uncertainty, market volatility, and risks to growth and financial stability,” it said.
Looking forward
The big moments to track this week.
Eurozone inflation data, US GDP and consumer inflation data, Non-Farm Payrolls and some earnings data from Apple and more.
Tuesday | GfK Consumer Confidence.
Wednesday | Reports of GDP Growth Rate YoY and QoQ from the Eurozone and US.
Thursday | Labour Day in many countries.
Friday | US unemployment rate and flash Consumer Price Index (CPI) for April.
Here's what we're talking to our clients about
We’re always in dialogue with our clients about what’s best for them. Here’s a sneak peek at some of the conversations we’re having and how we’re helping them.
- Prepping for Money2020
- Changing business sentiment
- Planning H2 and the inflation/interest rate environment
The contents of this article do not constitute financial advice and are provided for general information purposes only.
