In the next two weeks, EUR/USD and S&P 500 are poised for landmark developments. Analysts expect a phase of increased volatility, marked by important economic data and geopolitical events.
Euro struggles for stability
The EUR/USD is currently trading at around 1.07-1.08, trapped in a technical pattern that experts call a "falling wedge". This pattern often indicates a possible imminent trend reversal. The inflation data of the eurozone on April 1 will be decisive.
If inflation exceeds the projected 2.1%, this could dampen expectations of ECB interest rate cuts and support the euro. On the other hand, the ECB meeting minutes on April 8 could strike a more dovish tone in light of the recent recession in the euro area.
On the other side of the Atlantic, traders are eagerly awaiting the US jobs report (NFP) on April 3. A strong NFP report could strengthen the dollar and reinforce the Fed's dovish stance.
S&P 500 balances on a knife's edge
The S&P 500 is currently moving in an upward channel, supported by the 200-day average line at 5,647 points. But there are also risks: Fed Chair Powell's speech on April 2 could tip the mood, especially if he sticks to his 'higher for longer' rhetoric.
Additional excitement is promised by Tesla's quarterly figures and potential geopolitical tensions in the Middle East, which could drive up the price of oil. Investors should be particularly vigilant in the coming weeks. The mix of macroeconomic data and corporate results could cause significant market movements.
The next two weeks promise to point the way forward for the further development of the market in the second quarter.
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