The US-China stand-off remains the topic issue in the global market. Although the tensions somewhat softened between the parties, investors remain heads-up waiting for further development of the situation. The signs that China and USA are ready to hold meaningful talks will reportedly support demand for the risk that started slackening at the morning trading on April 11. This is confirmed by just slight upturn recorded in Asian stock markets.
Meanwhile, the market expert estimates that the currency markets will focus on the US reports – inflation data and minutes of Federal Reserve March meeting. Despite positive labor market performance and good economic growth, prices do not soar. However, annual CPI could rise to 2.4% (2.2% earlier) in March, as the forecast showed. If the expectations come true, the figures are said to be the highest y-o-y. Notably, base CPI that gives more accurate results as does not cover volatility components, exceeded 2.0% (1.8% earlier).
In that case, the greenback will start rising on all fronts driven by an anticipated faster lift of the interest rate by Federal Reserve, the expert estimates. However, its response is unlikely to be a long-lived anyway, since the market will be careful ahead of the Federal Reserve minutes release. Still, the regulator will hardly make any starling statements and may adopt a waiting mode following the stand-off with China.