Economic growth conditions continued to be top-of-mind for investors this week, but unlike a fortnight ago, the downturn in growth expectations didn’t filter into the dollar via haven flows. Instead, expectations for the Fed’s hiking cycle this year fell in tandem with the data, boosting risk assets such as equities and weighing on the greenback. Next week, economic activity data remains in focus as China’s May PMIs are released. Meanwhile, the Bank of Canada is set to hike rates by 50bp again on Wednesday, while Friday’s US payrolls report could extend the market’s dovish repricing of Fed expectations.
Please note, due to a public holiday in the UK next week, there will be no Week Ahead published on May 4th.
You can read the Week Ahead in full here:
Simon Harvey, Head of FX Analysis
Jay Zhao-Murray, FX Market Analyst
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