Global political concerns look likely to remain a focus in the week ahead, so we should expect the markets to stay at the mercy of headlines risk. However, so far the market is showing little appetite to chase risk assets higher. The United States, France and Britain launched 105 missiles targeting what the Pentagon said were three chemical weapons facilities in Syria in retaliation for a suspected poison gas attack in Douma on April 7. Russian President Vladimir Putin warned on Sunday that further Western attacks on Syria would bring chaos to world affairs, as Washington prepared to increase pressure on Russia with new economic sanctions. But with President Donald Trump declaring mission accomplished, investors wagered the worst had been avoided.
The currency markets are starved for some basic fundamental premise. However, other than a heavy dose of Fed speak there not much to highlight besides March retail sales on Monday, but the remainder of the US calendar is unusually light. Nevertheless, with former FBI Director Comey’s book tour set to start this means that headlines around the Russia investigation could dominate currency views this morning. The United States reports retail sales later on Monday and there are around 15 Federal Reserve speakers in the diary for the week. Also this week, the IMF will hold its spring meetings of central bankers and finance ministers in Washington.