The US economy continues to show signs of recovery, but the Fed squashed any expectations of tapering QE in the near future, saying that the economy required continuing support. PMIs in Europe and the UK showed improvement in March.
German and eurozone Service PMIs were a bit higher than expected, with readings of 51.5 and 49.6, respectively. For Germany, this was the first time that services showed growth in six months – the 50 line separates growth from contraction.
- UK GDP: Tuesday, 6:00. Monthly GDP is projected to show a gain of 0.5% for February, after a reading of -2.9% beforehand.
- US Inflation Report: Tuesday, 12:30. CPI will be closely watched, but is not expected to show much change in April. Headline inflation is expected in at 0.5% and the the core reading at 0.2%.
- Canada ADP Non-Farm Employment Change: Thursday, 12:30. This report has been showing sharp job losses and came in at -100.8 thousand in February. Will we see an improvement in March?
- Eurozone Inflation Report: Friday, 9:00. Headline inflation rose to 1.3% in February, up from 0.9% beforehand. Core CPI slipped from 1.1% to 0.9%. The upcoming releases are expected to confirm the initial releases.
- EUR/USD forecast – for everything related to the euro.
- USD/JPY forecast – projections for dollar/yen.
- AUD/USD forecast – predictions for the Aussie dollar.
- USD/CAD forecast – Canadian dollar analysis
- Forex weekly forecast – Outlook for the major events of the week.