OANDA Senior Market Analyst Kelvin Wong joins Jonny Hart to discuss this week’s key economic data and events. Firstly, the possible scenarios on the trajectory oil prices after its 13% rally seen in the past month amid geopolitical tensions in Middle East with fears of tic-for-tact retaliation moves between Israel and Iran.
Secondly, the adverse impact on rising oil prices towards risk assets such as global stock indices via the conduit of higher cost of funding through a higher US 10-year Treasury yield that surpassed a key 4.50% technical level last week. Thirdly, potential escalation of a currency war via a weakening Chinese yuan to drive China’s export growth if Q1 GDP, retail sales, and industrial production for March disappoints.
Lastly, UK and Japan’s inflation data for March to take note; especially in light of a significant weakening of the JPY the plummeted to a 34-year low against the US dollar.
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