The big picture: A tale of three central banks

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Unfavorable trends in US inflation, rising geopolitical tensions, and weak Chinese economic data have pushed equity prices lower and volatility higher. The market is in risk reduction mode and there is a bid in the Dollar. Inflation breakevens are rising and financial conditions are tightening. The US wants to normalize policy but is being held back by a strong economy and short-term inflationary trends. The ECB and the Bank of Canada have dovish rhetoric and want to ease policy. The US, Europe, and Canada have differing narratives among their central banks. The upcoming week is packed with economic data releases. AUD/USD is rising toward 0.6700 as traders look through Middle East escalation. Gold price rebounds above $2,350 on Middle East geopolitical risks. USD/JPY stays defensive below 153.50 amid Iran-Israel conflict. Solana price is nurturing a recovery rally. CPI numbers are due in the UK, Japan, Canada, and New Zealand. GBP/USD outlook is bearish. EUR/USD threatens to fall below parity. A trader hits $6M pay dirt after spending $8K on Ethereum memecoin. Cryptocurrencies look stronger than stocks. Forex seasonality shows best-worst performers in April. Elliott Wave analysis shows Nasdaq and top tech stocks.

#CentralBanks #Inflation #GeopoliticalTensions #EconomicData #RiskReduction #CurrencyExchangeRates

https://www.fxstreet.com/analysis/the-big-picture-a-tale-of-three-central-banks-202404142250