Markets finished last week on a positive note after President Trump again indicated a peace deal with Iran could be signed as early as this weekend, with news confirming early Monday that a US-Iran deal had been agreed. Attention this week is expected to shift back towards fundamentals as an extremely busy central bank calendar takes centre stage, featuring rate decisions from the Federal Reserve, Bank of Japan and Bank of England, alongside key UK inflation, employment and retail sales data.
Market Review & Outlook
Markets finished last week on a positive note after President Trump once again indicated that a peace deal with Iran could be signed as early as this weekend. Sentiment swung sharply back and forth throughout the week as headlines from the Middle East continued to drive price action, however investors appear increasingly confident that a resolution may be getting closer after the Iranian Foreign Minister confirmed that progress had been made and some details had already been agreed.
As we head into the new week, news out early on Monday that a deal has been agreed between the US and Iran has provided a positive start for investors. However, attention is expected to gradually shift back towards fundamentals as an extremely busy central bank calendar takes centre stage, highlighted by interest rate decisions from the Federal Reserve, Bank of Japan and Bank of England.
UK markets are also set for a busy week, with key inflation, employment and retail sales data due alongside the Bank of England meeting, which should keep Sterling traders on alert throughout.
Key Events This Week
Key events to watch this week include: the Federal Reserve rate decision, Bank of Japan rate decision, Bank of England rate decision, UK CPI, and UK employment data.
| Day | Event | Market Focus |
|---|---|---|
| Tuesday | Bank of Japan Rate Decision | JPY |
| Tuesday | Reserve Bank of Australia Rate Decision | AUD |
| Wednesday | UK CPI Inflation | GBP |
| Wednesday | US Retail Sales | USD |
| Wednesday | ★ Federal Reserve Rate Decision | USD |
| Thursday | New Zealand GDP | NZD |
| Thursday | UK Employment Data | GBP |
| Thursday | ★ Bank of England Rate Decision | GBP |
| Thursday | ★ Bank of Japan Rate Decision | JPY |
| Thursday | Swiss National Bank Rate Decision | CHF |
| Thursday | Philly Fed Manufacturing Index | USD |
| Thursday | US Weekly Jobless Claims | USD |
| Friday | UK Retail Sales | GBP |
| Friday | Canadian Retail Sales | CAD |
Trading Outlook for the Week
Be ready for volatility. Trade the week ahead with focus.
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