FX.co ★ Week Ahead - Apr 21st

The global financial markets are poised to remain highly sensitive to trade policies emanating from the United States, alongside reactive measures from China, the European Union, Japan, and key ASEAN trading partners. There persists a significant level of unpredictability regarding U.S. tariff trajectories, marked by oscillations between threats of escalation and commitments to forge trade agreements, all of which sustain volatility across diverse asset classes. As the earnings season progresses, notable U.S. corporations such as Alphabet, Tesla, Boeing, Intel, IBM, Merck, and P&G are in the spotlight, while in Europe, market participants are keenly awaiting reports from SAP, BNP Paribas, AON, and Sanofi. On the economic front, preliminary PMI data will provide critical insights into the initial repercussions of tariff threats on major economies, with results anticipated from the U.S., Eurozone, Japan, India, and Australia. In the U.S., attention will also be focused on durable goods orders and existing home sales, alongside key confidence indicators from Germany, France, and the UK, followed by retail sales figures from the UK. Concerning monetary policy, the People's Bank of China is expected to maintain stable loan prime rates.