Risky market sentiment was seen to ease slightly at the close of trading at the end of last week, seeing the market move more flat than before.
The strengthening of the US dollar was also a little gloomy in the final sessions that did not continue the positive pattern displayed in the middle of the week.
The market continues to monitor the development of the war between Iran and Israel after it was reported that a counterattack was launched by Israel at the end of last week.
It is likely that Iran is preparing to retaliate after previously warning that it would retaliate with a more devastating attack if Israel acted.
Adding to the tension in this issue, the United States (US) has reportedly approved a bill to fund military aid to Israel including Ukraine and Taiwan amounting to an estimated $95 billion.
This week, some important US economic data will be the focus for the focus of the Federal Reserve (Fed) in setting their monetary policy.
US Gross Domestic Product (GDP) data for the first quarter of 2024 will be published with the preliminary reading projected to be lower at 2.5% compared to 3.4% for the last quarter of 2023.
US PCE price index data will also be watched by the Fed at the end of the week as an important inflation component that could influence interest rate setting.
After evaluating the statements delivered by Chairman Jerome Powell and other FOMC members, the Fed is expected to maintain the existing monetary policy for now.
Expectations for the postponement of interest rate cuts by the Fed are seen to support the US dollar to remain traded positively in the market.
