The data calendar is expected to be relatively heavy with important implications for FX markets in the coming week. March inflation data for the US (Friday), the UK (Tuesday), Canada (Friday), Sweden (Tuesday) and the final reading of euro area inflation (Friday) are expected to gain considerable attention and are likely to confirm the relatively benign inflationary environment. Moreover, China’s Q1 GDP and activity data for March (Wednesday) are expected to moderate, in line with the expectation for further monetary easing by the PBOC. The semi-annual MAS policy review (Tuesday) is also expected to be closely watched.  Lastly, the UK and Australian employment reports (Friday and Thursday, respectively) are also expected to come into focus. In the case of Australia, the economists are more constructive relative to market expectations.

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