This week, the focus is mainly on central banks. The Federal Reserve is expected to announce a 50 basis point hike in its key interest rate on Wednesday, because inflation remains high while the labor market is healthy. The oil price may also move due to the OPEC+ meeting scheduled for Thursday. Last week the oil price rose by about 3 percent.
In Japan, consumer confidence rose in April. This was revealed on Monday from figures from the Japanese government. The confidence index rose from 32.8 to 33.0, after falling a month earlier. Japanese industry rose less sharply in April. The Japanese manufacturing purchasing managers’ index declined from 54.1 in March to 53.5 in April. A preliminary figure indicated a drop to 53.4. An index reading greater than 50 indicates growth, while less than 50 indicates contraction.
A further depreciation of the euro is expected given the current market developments. Last week the euro even fell below USD 1.05. Currency specialists indicate that the expected interest rate decisions by the Federal Reserve are already fully factored into the exchange rate. Although less likely now, peace negotiations in Ukraine could take the pressure off the euro exchange rate.
The 6M Euribor increased with 1 basis point to -0.24% compared to previous business day. The 10Y Swap increased with 4 basis points to 1.72% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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