Weekly Outlook | Markets recovering, risk- on in full steam 

Important events this week: 

Last week financial markets still had to cope with the implementation of fresh tariffs from the US. Stock markets, in particular from the US lost sharp momentum before starting to rise again. Trump stated that a delay of 90 days will be implemented until tariffs come into effect. This caused renewed trust in the equity sector causing markets in general to rise.  

Furthermore, the entire risk situation has changed. The Dollar continued to lose steam again, the AUDUSD currency pair was rising as an indication of positive risk sentiment and oil prices continued to trade positively as well. 

On the other hand, Gold prices remain strong. The weaker Dollar might play a role here but also investors seem to not trust the global situation currently. Tariffs over China will remain in effect now. The Chinese addition of fresh tariffs did not cause markets to tumble again on Friday last week but general tensions in markets remain visible. 

Fresh interest rate decisions this week might add some volatility to markets while the CPI data from the UK might offer clarity for the direction of the Pound, which had been capped against the Dollar in particular. 

– CA – interest rate decision– The interest rate decision this week is expected to move markets. The Loonie as the Canadian Dollar is called does currently not have its own momentum and is losing some momentum against the EUR but also gearing up steam against the US- Dollar. If the Bank of Canada will not cut interest rates the Canadian might gear up further steam. However, the current debate about added tariffs by the US might put fresh burden as well causing the BoC to also do another rate cut. This might in turn cause the EURCAD currency pair to move higher. 

EURCAD, daily chart 

The EURCAD currency pair’s daily chart shows the technical resistance zone at 1.5800. Any break of that area might unleash further momentum to the upside. Meanwhile also the EUR is strong potentially helping this pair to even move higher. The rate decision will be held on Wednesday, the 16th of April at 15:45 CET. 

– EU interest rate decision– it is expected that the ECB will cut interest rates again this month. Any move might initially weaken the EUR. Yet, since a move by the central bank is expected potential losses by common currency should remain limited. Instead, they might offer interesting entry opportunities 

EURUSD, weekly chart 

As the weekly chart above shows, the 1.1200 resistance zone might now act as a support area if prices start to fall again. In this case that area might offer interesting entry opportunities to the upside again, when buying at lower levels. The data will be released on Thursday, 17th April at 14:15 CET.