Financial markets' participants will be on a date with a number of important economic data this week, led by inflation data in China and the United States, in addition to the continuous follow-up to the latest developments of the Coronavirus and its impact on global financial markets..
The movements of the US dollar this week will depend on the impact of economic data from the world's largest economy, as well as any updates related to the spread of the Coronavirus.
As for the economic reports, the most important will be inflation, in addition to the weekly unemployment benefits report, which showed a significant deterioration in the labor market as a result of the outbreak of the Covid-19 pandemic.
The consumer price index (CPI) may show a 0.2 percent decrease in March and a slowdown to 1.7 percent year-on-year from a previous of 2.3 percent.
Investors will also follow the FOMC minutes, as it may give the impression whether the Fed is ready to disclose more stimulus plans or it is satisfied with the current monetary weapons used to combat the virus.
Sterling investors and traders should keep their eyes open this week, as the UK will release its initial GDP report for the month of February.
The British economy is expected to record a growth of 0.1 percent in February, after not recording any growth in January.
Also, among the most important data from the British economy are industrial production and the trade balance for February, in addition to the construction sector PMI data for March.
The euro will probably follow the general sentiment in markets due to the lack of important economic reports from the euro area this week.
Aside from following the
latest updates about the spread of the virus in Europe, the most important
reports are those that will be issued from Germany and Italy, which will follow
the situation of the industrial sector.