Weekly Outlook: May 6-10 By Investing.com


© Reuters.

Investing.com: this week, investors will focus on US inflation reports. UU After the Federal Reserve said last week it is likely to keep interest rates stable for a prolonged period.

President Donald Trump cited low inflation in his calls on the Fed to reduce interest rates. However, Federal Reserve Chairman Jerome Powell downplayed the recent weakness in US inflation as "transient."

Market watchers will also keep an eye on trade talks between the United States and China amid hopes that an agreement is coming to end the trade dispute that lasted months between Washington and Beijing.

The dollar fell against a basket of currencies on Friday, as traders focused on the weaker aspects of the April US payrolls report, eliminating hiring stronger than expected and a drop in the unemployment rate to the lowest in more than 49 years.

The modest monthly rate of wage growth of 0.2% and the drop in the labor participation rate led some to sell the greenback, badysts said.

"These soft details did not provide a convincing reason to add to already large dollar positions," said Eric Viloria, senior currency strategist at Credit Agricole in New York.

The one that tracks the dollar against a basket of six currencies was 0.4% lower than 97,197 on Friday night, with a weekly decline of 0.54%.

The increase was 0.24% to $ 1.1202 after reaching a minimum of one week at $ 1.1135, while it was 0.35% weaker at 111.09 yen.

The single currency gained 0.4% against the dollar in the week, while the dollar fell 0.4% against the yen.

The dollar was also pressured after the Supply Management Institute said its services index registered a surprise drop to a minimum of 20 months in April.

Comments from Chicago Fed President Charles Evans and St. Louis Fed President James Bullard backed the bets that the central bank of the US. UU It could reduce key loan rates by the end of the year, although Fed Chairman Jerome Powell said two days ago he saw no need to increase or decrease rates at this time.

Evans said at an event in Stockholm that lower rates could be needed in the United States if the economy softens.

Bullard told CNBC television that the Fed's policy rate is "a bit tight" and that current inflation readings are uncomfortably low.

Meanwhile, the dollar ended the week down, amid speculation that the central banks of both countries could reduce interest rates next week.

The Reserve Bank of Australia meets on Tuesday and the Reserve Bank of New Zealand the next day. Each can reduce rates amid concerns about reports of low inflation, badysts said.

Investing.com has compiled a list of significant events that are likely to affect the markets.

Monday, May 6

EU services, composite PMI (April)
Retail sales of the EU (March)
This is the president of the Chicago Fed, Evans
FOMC member Harker speaks
Williams, member of the FOMC, speaks
Praet speaks of the ECB

Tuesday, May 7

RBA political meeting
This is Kaplan, member of the FOMC
Member of FOMC Quarles speaks
China's trade balance (April)

Wednesday, May 8

RBNZ political meeting
China CPI, PPI (April)
Minutes of the monetary policy of the ECB
Industrial production of Germany (Mar)

Thursday, May 9

USA PPI (April)
The president of the United States Fed, Powell, speaks
Initial claims for unemployment in the United States
United States trade balance (March)

Friday 10th May

German Commercial Balance (Mar)
French Industrial Production (Mar)
United States GDP, industrial production, trade balance.
United States CPI (April)
Bostic speaks, FOMC member

– Taxpayers contributed to this report.

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