The foreign exchange (forex) market is one of the most volatile and dynamic financial markets in the world. As a result, forex traders and investors closely monitor global economic and political news to make informed decisions and stay ahead of market trends.
While the fourth week of April 2023 saw a relatively quiet period in the financial markets, according to Daily Forex, there were still a few noteworthy updates worth considering. In this article, we’ll take a closer look at the most significant forex news updates from the fourth week of April and how they may impact the global currency markets.
Major Data Releases
- US Core PCE Price Index data showed a month-on-month increase of 0.3%, which was as expected, so this had no impact on inflation expectations. The Core PCE Price Index is a closely watched measure of inflation and is used by the US Federal Reserve to set monetary policy.
- US Advance GDP data was disappointing, with annualized growth of 2.0% expected, but the data showed growth of only 1.1%. This is a significant miss and could indicate that the US economy is slowing down. Forex traders will likely pay close attention to future economic data releases to gauge the strength of the US economy.
- German Preliminary CPI came in lower than expected, at a month-on-month increase of only 0.4% This is a worrying sign for the Eurozone economy, as it suggests that inflationary pressures are weak. The European Central Bank may need to take further action to boost inflation and stimulate the economy.
- Bank of Japan Outlook Report and Monetary Policy Statement – the bank maintained its negative interest rate which is designed to stimulate lending and boost inflation. The Bank of Japan’s decision was widely expected, but it underscores the challenges facing the Japanese economy, which has been struggling with low growth and deflation for years.
Next Week Events
Despite the relatively quiet week in the global financial markets during the fourth week of April, the upcoming week is expected to be eventful with several significant events on the horizon that could potentially have a powerful impact on the forex markets, namely:
- The US Federal Reserve’s next meeting with the expectation the Fed will make its final rate hike of 0.25% in the current cycle. Recently on May 3rd, the Federal Reserve finally increased its key interest rate by 0.25 percentage points. Forex traders and investors should closely monitor the Fed’s decision on interest rates, as any changes could have a significant impact on the US dollar and other major currencies.
- The release of non-farm payroll data in the US at the end of the week. Forex traders will be paying close attention to the data release to gauge the strength of the US economy and to look for potential trading opportunities.
Disclaimer
The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision. The further decisions are fully the readers’ responsibility.
