Forecasts for next week: The FOMC and NFP in the spotlight

The Dollar went through another week in which the publication of data and expectations of interest rate cuts by the Federal Reserve continued to be the center of the debate. In this sense, the US Dollar Index (DXY) appears to have started a gradual decline after reaching new yearly highs at the beginning of the month. This retraction, however, should be considered temporary.

It was a negative week for the dollar, further extending the rejection of yearly highs despite the upward move in US yields in response to investors' realignment of the possible timing of the first interest rate cut by the US. of the Fed. On April 30, the always relevant Consumer Confidence Index prepared by the Conference Board will be published, along with the FHFA consumer housing price index and the cost of employment index. On May 1, all attention will be focused on the Fed's interest rate decision, supported by the ADP employment change, ISM manufacturing PMI, construction spending and the final S&P Global manufacturing PMI. Additionally, initial unemployment benefit claims, as well as factory orders and trade balance results, will be released on May 2. To close out the week, markets will focus on nonfarm payrolls, unemployment rate, S&P Global Services PMI, and ISM Services PMI.

The EUR/USD pair chained its second consecutive week of gains and finally managed to break above the key 1.0700 barrier thanks to improving sentiment in the risk-related space. On April 29, Germany's preliminary inflation rate will be released, as well as eurozone consumer confidence. Germany's retail sales, first-quarter GDP growth rate and labor market report will be released on April 30, followed by the preliminary inflation rate in the euro bloc. The final manufacturing PMI for Germany and the euro zone will be published on May 2, and the EMU unemployment rate on May 3.

Following its risk counterparts, GBP/USD abruptly reversed two consecutive weeks into negative territory, managing to recover the zone beyond 1.2500. In the UK, mortgage and home loan approval figures will be released on April 30, ahead of the release of the S&P Global manufacturing PMI on May 1. National housing prices will be released on May 2, ahead of the final S&P Global Services PMI on May 3.

It seems that the selling pressure on the Japanese yen has not let up, which has led the USD/JPY to reach new highs at levels close to the 157.00 point barrier. The Japanese calendar will release the unemployment rate on April 30, followed by industrial production and retail sales. Consumer confidence will be released on May 1, while BoJ minutes and foreign investment in bonds will be published on May 2.

The better tone in the raw materials complex, together with the renewed selling stance of the Dollar, supported a positive streak of several sessions in the AUD/USD. In Australia, housing credit and retail sales progress will be released on April 30. Judo Bank's final manufacturing PMI and Ai Group industrial index will be released on May 1, ahead of the release of trade balance and construction permits results on May 2. Finally, figures for Home Loans, Home Investment Loans and Judo Bank's final services PMI will be published on May 3.

Additionally, China's manufacturing and non-manufacturing PMIs will be released on April 30, followed by the NBS, before the Caixin indicators on May 6.

Anticipating Economic Outlook: Voices on the Horizon

• BoC's Macklem and RBNZ's Orr speak on May 1.
• BoC's Macklem speaks on May 2.
• The Fed's Goolsbee and Williams will speak on May 4.

Central banks: Upcoming meetings to define monetary policy

• The FOMC meets on May 1 and is expected to keep rates unchanged.