The first stormy quarter of 2022 ends and most of this month’s high-impact news and releases have passed.
So the week ahead, markets will watch US and eurozone data to gauge how aggressive central banks might get in their fight against inflation.
All eyes turn toward the US Non-Farm payrolls report on Friday as it may show how hawkish was the Federal Reserve’s aggressive trajectory for tightening monetary policy. Economists expect 450,000 new jobs were created versus 678,000 in February.
On top of that, the first estimates of March eurozone inflation also emerge on Friday. They may test the European Central Bank’s narrative that there’s no rush to raise interest rates.
Also in focus will be Europe’s dilemma of whether or not to sanction Russian energy exports, potentially causing further price surges and economic difficulty.
The first stormy quarter of 2022 was not one to remember, except for investors trading oil, metals or grains. Stock markets, traditional currencies and even safe havens have been rocked by the Russian invasion of Ukraine as well as the Federal Reserve’s tightening.
Chinese markets had to cope with renewed COVID-linked lockdowns in many cities. The US dollar has been mixed in recent weeks. As a result, traders focused on market positioning and unwinding in safe havens like the Japanese Yen.
Inflation figures from major European economies may determine Euro‘s fortunes this week.
Global inflation will hit 6.3% this quarter, the fastest rise in a quarter-century, JPMorgan estimates.
Crypto seems to be comparatively steady, proving surprisingly resilient amid global chaos, contrasting with its previous performance. The total value of the cryptocurrency market has pushed through the $2 trillion barrier on Friday.