The Central Banks Retreat

Issue Number: 7

Issue Pages: 43

Date: May 28, 2024

  • Oceania's Hawkish Mood
  • Inconsistency in The UK
  • Continued Growth in The US

ePlanet Times No.7 weekly forex newspaper 

As a comprehensive forex-based resource, ePlanet Times (weekly forex newspaper) enables you to understand and analyze price movements in the global markets. Through this weekly newspaper we strive to create a suitable medium for our traders to recognize factors affecting prices and to prepare them for the key events in the coming week. By providing unbiased opinions and analyses, ePlanet’s analytical team accompanies you towards more conscious and well-informed decisions for their trades.  

An Overview of ePlanet Times NO.7 “The Central Banks Retreat” 

The seventh edition of ePlanet Times published on Sunday, strives to guide all market participants and traders towards more conscious and profitable trading decisions by providing in depth analysis of the global financial markets. This edition focuses on the most influential developments of the previous week while presenting key events in the coming week with potential scenarios and their impacts on the global financial markets. 

Let’s begin with the Weekly Wrap-up. Last week’s economic calendar offered insights into global monetary policy and economic health. Central banks in New Zealand and Australia maintained hawkish stances to combat inflation, while Canada and the ECB are expected to cut rates soon. However, the estimated timing of the Fed’s first rate cut remains the biggest mystery in the financial markets as every data, every sentiment and every speech given by the policy makers shifts the outlook to the monetary policy path more drastically compared to the rest of the central banks. As for the Bank of England, the central bank might delay interest rate cuts due to high services inflation, despite falling overall inflation.

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Recent data has showcased that economic activity is experiencing improvements in the US and Germany, with private sector business activity expanding. However, the housing market in the US and UK keep struggling due to high mortgage rates. 

Perhaps most important of all last week was Nvidia’s Q1 earnings results. The Chipmaker sent its stock price over $1,000 as the earnings exceeded expectations phenomenally and the AI leader has now become the world’s third-largest company by market value.

In the News Digest section, ePlanet Times focuses on recent updates and developments reported by reliable news sources or stated by influential figures in the financial markets. Other than forecasts from the BofA, Goldman Sachs, Fitch and Nomura, this edition brings recent remarks from Janet Yellen, Rishi Sunak and some ECB policy makers to the spotlight. 

The coming week will heavily focus on inflation data announcements from the US and europe. The US Federal Reserve might delay a rate cut due to the crucial Personal Consumption Expenditure (PCE) data release on Friday. A higher-than-expected inflation reading in the PCE could dampen hopes for a rate cut in 2024, while a lower reading could reignite those hopes for September.

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Other noteworthy events include Germany’s ifo Business Sentiment Index, a leading indicator of business confidence, which is expected to reach its highest level in a year. Consumer spending data from Australia will also be released, providing insights for the Reserve Bank’s next policy move. China’s manufacturing PMI data, a key indicator of the country’s economic recovery, is expected to remain unchanged. Finally, Canada’s GDP data could influence expectations for a potential rate cut in June.

The economic analysis of the week, Written by Sadra Molavi focuses on the US economy and its upcoming data releases, while the technical analysis of the week provides possible trading scenarios for symbols like Gold, The Dollar Index, Brent Crude Oil and EURGBP. 

For a deeper dive into the reports and developments mentioned, we recommend exploring the seventh edition of ePlanet Times: “The Central Banks Retreat!”

Click here to view the previous version ePlanet Times No.6