Weekly Outlook: April 2 - 6

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Dollar ends Friday flat in holiday-thinned trade
Dollar ends Friday flat in holiday-thinned trade

Investing.com - Investors will be watching to see whether the dollar can hold on to its recent gains in the coming week as the new quarter gets underway.

Questions over global trade protectionism and the outlook for the U.S. economy look likely to persist.

Investors will be looking ahead to Friday’s U.S. jobs report for indications on the future direction of U.S. monetary policy in the wake of the Fed’s first rate hike this year two weeks ago.

The dollar ended flat against a basket of the other major currencies on Friday as trade volumes remained thin with many of the world’s financial markets closed for a holiday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 89.75 in late trade. For the week, the index was up 0.88%.

The dollar gained ground during the week boosted by easing concerns over the threat of a trade war and hopes for a diplomatic breakthrough with North Korea over its nuclear program.

The dollar dipped against the yen on Friday, with USD/JPY slipping 0.15% to 106.28, but still ended the week with gains of 1.36% after rebounding from 16-month lows on Monday.

The euro edged higher on Friday, with EUR/USD rising 0.16% to 1.2319 to end the week 0.28% lower.

The pound was almost unchanged against the dollar late Friday, with GBP/USD at 1.4017 but ended the week down 0.93%.

As well as U.S. jobs data investors will be closely watching UK PMI data this week which is expected to show that activity in the manufacturing and service sector remained solid last month.

Investors will also be awaiting Wednesday’s euro zone inflation data, which is expected to show that a recent slide in consumer prices has come to an end. A pickup in inflation would bolster expectations for an end to European Central Bank stimulus later this year.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, April 2

Markets in Australia, New Zealand and Western Europe will be closed for the Easter Holiday.

China is to release data on the Caixin manufacturing index.

In the U.S., the Institute of Supply Management is to publish its manufacturing index.

Tuesday, April 3

New Zealand is to release data on business confidence.

The Reserve Bank of Australia is to announce its benchmark interest rate and publish a rate statement which outlines economic conditions and the factors affecting the monetary policy decision.

In the euro zone, Germany is to release data on retail sales.

The UK is to release data on manufacturing activity.