This week all eyes will be looking ahead to Friday’s data on U.S. first quarter growth, which is expected to show that the economy is stabilising after a recent soft patch.
Data last week pointing to an unexpected narrowing of the U.S. trade deficit in February and a rebound in retail sales in March have bolstered expectations that the economy is regaining momentum after a weak start to the year.
The week will also bring reports on U.S. housing data, durable goods and consumer sentiment.
Away from the U.S., markets will be looking ahead to central bank meetings in Japan and Canada for fresh insights from policymakers on the global economic outlook.
Geopolitical events will also remain in focus ahead of a summit meeting between President Donald Trump and Japanese Prime Minister Shinzo Abe in the White House on Friday. They are to hold talks on U.S.-Japan trade and efforts to contain North Korea’s nuclear program.
The U.S. dollar was higher against a basket of the other major currencies in holiday-thinned trade Friday, with many financial markets closed for the Good Friday holiday.
Demand for USD has continued to be underpinned after data on Thursday showing that U.S. retail sales grew at their strongest pace in one-and-a-half years in March.
The euro was slightly higher against the dollar late Friday, with EUR/USD ticking up 0.15% to 1.1245, after falling to a one-and-a-half week low in the previous session, pressured by weak euro zone PMI data.
The dollar was little changed against JPY and GBP in late trade.
This weeks has list of significant events likely to affect the markets.
Monday, April 22
U.S. Existing home sales (MoM) (Mar)
Tuesday, April 23
U.S. House Price Index (MoM) (Feb)U.S. Services PMI (Apr)U.S. New Home Sales (MoM) (Mar)U.S. Richmond Manufacturing Index (Apr)Eurozone Consumer Confidence (Apr)
Wednesday, April 24
German Ifo business climate indexBoC interest rate decision
Thursday, April 25
BoJ Monetary Policy Statement U.S. Durable Goods Orders (MoM) (Mar)U.S. Initial Jobless Claims
Friday, April 26
U.S. GDP (QoQ) (Q1)U.S. Real Consumer Spending (Q1)U.S. Michigan Consumer Sentiment (Apr)