As April comes to a close, the markets are bracing for a busy week ahead, with multiple macro events set to unfold. The monetary policy decisions of four major central banks - the Bank of Japan, the US Federal Reserve, the European Central Bank, and the Bank of England - are expected to be announced this week. Additionally, a slew of key US data releases, including first-quarter GDP and March PCE inflation, are scheduled, along with earnings reports from prominent companies such as Visa, Mastercard, Robinhood, and several major tech firms. These developments have the potential to either reinforce or shift the current market tone.
According to Markus Levin, Co-founder of XYO, bitcoin is entering the week with significant momentum around the $78,000 level. However, the prospect of persistent inflation and a potential hawkish tone from the Fed could lead to a short-term pullback to the $72,000-$74,000 range.
Levin also emphasized the importance of tech giants' earnings reports, which could influence the market trajectory due to their substantial impact on equity markets. Furthermore, the progress of US-Iran talks is likely to impact market sentiment through fluctuations in oil prices and dollar movements.