On Tuesday, the RBA and the Bank of China will decide on the interest rate. Given the increase in inflation pressures worldwide, the easing of credit conditions is not expected, however, regulators may clarify the approximate timeframe or conditions for policy normalization. Consequently, there is a risk of a predominantly positive AUD and CNY reaction to the decisions of the central banks.

An update on monetary policy from the Bank of Canada is expected on Wednesday. Taking into account the strong data on the labor market in Canada for March, the recovery in oil prices, the Central Bank may announce the timing of the rollback of QE, which may also attract buyers to the Canadian dollar. Data on the dynamics of consumption in Australia (inflation, retail sales), as well as inflation in the UK should also be of interest to investors.

The decision on the monetary policy of the ECB is expected on Thursday. Lower yields on EU sovereign bonds mean that the ECB has less incentive to increase asset purchases. The ECB is expected to take a wait-and-see attitude, as uncertainty is still high due to the virus but not enough to add more credit stimulus.

Soft data on the British economy will appear on Friday, and the Central Bank of Russia will clarify the course of monetary policy. The interest rate is likely to be raised in response to rising inflationary pressures and to contain excessive ruble depreciation.

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