Upbeat moods dominated at the end of this week as Biden unveiled a massive infrastructure spending plan. Minutes releases from Fed and ECB will be the top macro events of the next week. Apart from that, investors will also focus on data from the US and oil inventories report from DOE. Be sure to watch US500, EURUSD and OIL.WTI in the week ahead.
US500
S&P 500 climbed above the 4,000 pts mark for the first time in history this week. Investors looked past the deteriorating pandemic situation in the United States and Europe, and pushed indices higher as President Biden unveiled a massive infrastructure deal. A massive beat in the US manufacturing ISM data supported sentiment further. Services ISM releases (Monday, 3:00 pm BST) and jobless claims data (Thursday, 1:30 pm BST) can be found among key US reports next week.
EURUSD
EURUSD dropped to the lowest level since US presidential elections this week as the US dollar continued to strengthen. However, greenback has lost its shine in the second half of the week, allowing the main currency pair to recover the majority of losses. Minutes from two major central banks are key releases for the pair next week - Fed (Wednesday, 7:00 pm BST) and ECB (Thursday, 12:30 pm BST). While Fed has mostly stayed put during its latest meeting, ECB signaled quicker bond purchases to tame rising yields. Having said that, ECB minutes may surprisingly turn out to be more interesting.
OIL.WTI
OPEC+ was expected to leave production unchanged this week. However, the group presented a plan for gradual output increases that assumes increasing daily production by over 1.1 million barrels over the May-July period. Decision was viewed as a sign of confidence that the global economic recovery will continue and oil prices jumped in spite of an increase in oil supply. WTI recovered from weekly lows below $59 to finish this week's trading above $61 handle. DOE report on oil inventories will be in the spotlight next week (Wednesday, 3:30 pm BST) after this week's release showed the first weekly drop since mid-February.
