Despite a relatively full economic calendar to start the week, financial markets adopted a cautious tone yesterday. While currency moves remained contained, upcoming confidence data and central bank speeches could bring fresh momentum.
Dollar Starts Weak, Then Rebounds
The US dollar opened the week under pressure but has since recovered some ground.
Traders remain wary ahead of key data and policy commentary, with many opting for a wait-and-see approach after recent volatility.
EU-UK Relations Reset Provides Calm, But Minimal Market Reaction
An announcement signalling a reset in post-Brexit relations between the EU and the UK provided a constructive backdrop for both the euro and the pound.
However, the news failed to significantly shift market sentiment, with most investors taking a measured stance as broader global risks continue to weigh.
Eyes on Eurozone Consumer Confidence
The main data point to watch in the near term is the flash estimate of eurozone consumer confidence for May.
Forecasts suggest a modest improvement, with expectations rising slightly to -16 from -16.7. While this would mark a small step forward, sentiment across the bloc remains fragile.
Central Bank Speakers in the Spotlight
Beyond data, markets will be tuning in to comments from several central bank officials over the coming days.
With inflation, growth and interest rates all under scrutiny, any fresh clues on future policy direction could move markets – particularly for the euro, dollar, and pound.
Navigate Volatility with Qu Money
With confidence indicators and monetary policy comments taking centre stage, staying ahead of market sentiment is more important than ever.
For expert insight into how these developments could affect your currency exposure – or to explore strategies to manage risk – speak to a Qu Money specialist today.