(AI Video Summary)
In this week’s video, Richard Snow and Nick Cawley have a chat about recent events and upcoming central bank meetings. They discuss some important economic data, like inflation figures, and how they are impacting the value of the US dollar. Nick points out that while the CPI figures were slightly higher than expected, they didn’t have a huge effect on the dollar. However, the PPI figures, which measure inflation at the producer level, showed higher inflation than predicted. This led to the dollar getting a boost and also caused expectations for interest rate cuts to be reined in.
The analysts then turn their attention to the upcoming central bank meetings, specifically the ones for the Reserve Bank of Australia (RBA) and the Bank of Japan. Nick mentions that recent wage data in Japan, showing the highest wage growth in 30 years, might influence the Bank of Japan’s decision to raise interest rates from negative territory. He thinks it’s a close call for their next meeting, but believes they may give a clear message that a rate hike is coming soon.
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They also touch on the Bank of England’s interest rate decision and inflation figures. Nick anticipates that there may be changes in how the votes are split among the policymakers and a slightly dovish (less inclined to raise rates) stance. The general expectation is for the first rate cut to happen in August, but some people have suggested that it could occur as early as May.
The analysts then go on to discuss various markets, such as the US dollar, stocks like the S&P 500 and Nasdaq, Bitcoin, the FTSE (a stock index in the UK), Euro/Sterling exchange rate, and Dollar/Yen exchange rate. They give brief summaries of each market’s performance and provide some insights. For example, they mention that the dollar is facing some resistance ahead of the 50 and 200-day simple moving averages, the stock market indices are continuing their upward trends, Bitcoin is volatile but still in an overall uptrend, the FTSE may be heading upwards, and some potential trading opportunities may arise with the Euro/Sterling and Dollar/Yen exchange rates.
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