Was this week calm, or did it rather herald a storm on the horizon? The beginning of the week brought little excitement, and the lack of key macroeconomic data could suggest that investors might enjoy a moment of respite. However, as is often the case in the markets, the calm before the storm is merely an illusion.
Tuesday brought the first significant events as the Bank of Japan and the Reserve Bank of Australia made their monetary policy decisions. Expectations for possible interest rate hikes in Japan did not materialize, which contributed to the stabilization of the yen. Meanwhile, Australia maintained its rate at 4.35%, which did not surprise the markets but also did not provide them with much impetus for further action.
Wednesday was the day investors interested in the British economy had been waiting for. The CPI inflation data in the UK came in lower than the forecasted 3.0%, reaching 2.8%. However, this slight disappointment did not trigger significant turbulence in the markets, as investors focused on the stable economic growth figures in the US, which confirmed the ongoing growth trajectory.
Thursday surprised with a higher number of unemployment claims in the UK than expected. The increase to 31.2 thousand from the forecasted 25.8 thousand indicated that uncertainty in the labor market is still present. Interest rates in Switzerland and the UK remained unchanged, providing investors with a moment of respite ahead of the upcoming Friday.
In summary, the past week has shown that markets continue to balance between fear and cautious optimism. Despite the lack of drastic changes, investors will remain vigilant regarding upcoming central bank decisions and macroeconomic data. Cryptocurrencies, as always, do not take a weekend break, so their supporters will have plenty to do watching the unpredictable movements in this market.
