The new quarter kicks off with a relatively quiet week in global markets due to holidays, but there are still key events that could impact stocks, Bitcoin, inflation, and the job market. Here's what to watch:
Jobs Take the Spotlight:
- U.S. Nonfarm Payrolls (Friday): This is the big one. Investors are looking for signs of continued strength in the U.S. labor market, with expectations of slower job growth compared to February's robust numbers. A weak report could trigger a rise in stocks and a fall in the dollar as the Federal Reserve might be less likely to raise interest rates.
- ADP Private Payrolls (Wednesday): This data offers a preview of the official jobs report and can provide clues about the overall health of the labor market.
Inflation in Focus:
- While there's no major inflation data release this week, comments from central banks, particularly the European Central Bank, could shed light on their inflation-fighting strategies.
Stocks Eyeing Earnings and the Fed:
- Earnings season continues with reports from companies like Dollar Tree and Dollar General, offering insights into consumer spending.
- Investors will be watching how stocks react to the Fed's recent dovish stance, with expectations of interest rate cuts later this year.
Bitcoin: Chasing the Bullish Divergence?
- Bitcoin bulls are looking for a price breakout, with some analysts pointing to a potential "bullish divergence" from the strong performance of stocks and gold.
- The key data point for Bitcoin this week is the U.S. jobs report, which has impacted Bitcoin volatility in the past.
Overall, this week is about gauging the strength of the U.S. job market and its impact on the Fed's monetary policy. Investors will also be watching for signs of inflation and how Bitcoin reacts to the broader market environment.