{"id":80026,"date":"2026-04-29T17:19:32","date_gmt":"2026-04-29T07:19:32","guid":{"rendered":"https:\/\/www.icmarkets.com.au\/blog\/?p=80026"},"modified":"2026-04-29T17:19:33","modified_gmt":"2026-04-29T07:19:33","slug":"ic-markets-europe-fundamental-forecast-29-april-2026","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com.au\/blog\/ic-markets-europe-fundamental-forecast-29-april-2026\/","title":{"rendered":"IC Markets &#8211; Europe Fundamental Forecast | 29 April 2026"},"content":{"rendered":"\n<p><strong>IC Markets &#8211; Europe Fundamental Forecast | 29 April 2026<\/strong><strong><br \/><\/strong><\/p>\n\n\n\n<p><strong>What happened in the Asia session?<\/strong><strong><br \/><\/strong><strong><br \/><\/strong>Today\u2019s Asia session saw mixed equities and softer oil prices, anchored by the UAE\u2019s announcement to exit OPEC, which undermined OPEC\u2019s perceived cohesion and triggered risk\u2011hedging in energy and related EM assets. At the same time, investors remained cautious over US\u2013Iran\u2011linked geopolitics and AI\u2011sector concerns ahead of the Fed decision, tilting flows toward more defensive positioning and compressing risk\u2011on sentiment in tech\u2011heavy indices and commodity\u2011linked FX.<br \/><br \/><strong>What does it mean for the Europe &amp; US sessions?<\/strong><strong><br \/><\/strong><br \/>Traders are closely monitoring the Federal Reserve&#8217;s policy announcement, which is widely expected to maintain interest rates at their current level of 3.50%\u20133.75%. This meeting carries additional significance as it is anticipated to be the final one chaired by Jerome Powell before his term concludes in May. Simultaneously, the equity markets are focused on a heavy slate of &#8220;Mag 7&#8221; earnings, with reports due today from Alphabet, Amazon, Meta Platforms, and Microsoft.<br \/>\u200b<br \/><strong>The Dollar Index (DXY)<\/strong><\/p>\n\n\n\n<p><strong>Key news events today<\/strong><\/p>\n\n\n\n<p>Federal Funds Rate (6:00 pm GMT)<\/p>\n\n\n\n<p>FOMC Statement (6:00 pm GMT)<\/p>\n\n\n\n<p>FOMC Press Conference (6:30 pm GMT)<\/p>\n\n\n\n<p><strong>What can we expect from DXY today?<\/strong><\/p>\n\n\n\n<p>The U.S. Dollar Index (DXY) was trading at approximately 98.58, reflecting a slight decline of 0.04% for the session. The dominant market focus for the day has been the conclusion of the two-day Federal Open Market Committee (FOMC) meeting, with markets largely pricing in a 94% probability that the Federal Reserve will hold the federal funds rate at the 3.50%\u20133.75% range.<br \/><br \/><em>Central Bank Notes:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Federal Open Market Committee (FOMC) is widely expected to hold the federal funds rate target range steady at 3.50%\u20133.75% at its March 17\u201318, 2026, meeting, amid rising oil prices from the US-Israel war against Iran and persistent inflation pressures, delaying any 2026 cuts potentially to September.<\/li>\n\n\n\n<li>The Committee continues to pursue maximum employment and 2% inflation goals, with the labor market weakening further as nonfarm payrolls declined by 92,000 in February 2026 and the unemployment rate rose to 4.4% from 4.3% in January.<\/li>\n\n\n\n<li>Officials face tilted risks from geopolitical tensions, elevated oil prices, and sticky inflation, with CPI steady at 2.4% year-over-year in February 2026, headline PCE at 2.8% in January, and core PCE rising to 3.1%.<\/li>\n\n\n\n<li>Economic activity has cooled after robust Q4 2025 growth of nearly 5%, with the Atlanta Fed GDPNow now estimating Q1 2026 growth at around 2.1%\u20132.7% amid softer consumer spending and labour data.<\/li>\n\n\n\n<li>December 2025&#8217;s Summary of Economic Projections forecasts 2025 unemployment at a median of 4.5%, 2026 GDP growth at 2.3%, and core PCE at 2.5%, with the dot plot signalling one more cut in 2026 to a median 3.4% funds rate; March updates may reflect softer labor and inflation upticks.<\/li>\n\n\n\n<li>The Committee maintains its data-dependent stance amid a softening labor market, inflation above target, and new oil shocks, likely holding rates at 3.50%-3.75% with ongoing divisions and possible hawkish dissents on rate cuts.<\/li>\n\n\n\n<li>The FOMC continues its adjusted quantitative tightening, with Treasury rolloff caps at $5 billion per month and agency MBS at $35 billion per month to ensure ample reserves post-2025 program adjustments.<\/li>\n\n\n\n<li>The next meeting is scheduled for 28 to 29\u00a0 April 2026.<\/li>\n<\/ul>\n\n\n\n<p><strong>Next 24 Hours Bias<\/strong><br \/>Weak Bearish<\/p>\n\n\n\n<p><strong>Gold (XAU)<\/strong><strong><br \/><\/strong><strong><br \/><\/strong><strong>Key news events today<\/strong><strong><br \/><\/strong><strong><br \/><\/strong>Federal Funds Rate (6:00 pm GMT)<\/p>\n\n\n\n<p>FOMC Statement (6:00 pm GMT)<\/p>\n\n\n\n<p>FOMC Press Conference (6:30 pm GMT)<\/p>\n\n\n\n<p><strong>What can we expect from Gold today?<\/strong><strong><br \/><\/strong><strong><br \/><\/strong>Gold is hovering just below $4,600 per ounce after a small dip from the previous session, with prices down about 0.26% to 4,584 USD\/oz while remaining strongly higher versus a year ago. Escalating Middle East tensions and the prolonged closure of the Strait of Hormuz have driven oil\u2011linked inflation worries and raised expectations that major central banks may keep rates higher for longer, weighing on non\u2011yielding bullion even as it still attracts some safe\u2011haven flows.<\/p>\n\n\n\n<p><strong>Next 24 Hours Bias&nbsp; &nbsp; <\/strong><strong><br \/><\/strong>Medium Bullish<\/p>\n\n\n\n<p><strong>The Euro (EUR)<\/strong><\/p>\n\n\n\n<p><strong>Key news events today<\/strong><br \/><br \/>German Prelim CPI m\/m (All Day)<\/p>\n\n\n\n<p><strong>What can we expect from EUR toda<\/strong>y?<br \/><br \/>The euro is trading in a narrow band just below 1.18 versus the U.S. dollar, held back by a resilient greenback and safe\u2011haven demand, while the ECB sticks with a cautious, data\u2011dependent stance amid elevated energy prices and lukewarm Eurozone growth. Inflation data for March surprised slightly to the upside, reinforcing the ECB\u2019s measured approach.<\/p>\n\n\n\n<p><br \/><em>Central Bank Notes:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Governing Council of the ECB is expected to keep the three key interest rates unchanged at its 29\u201330 April 2026 meeting, with the main refinancing rate at 2.15%, marginal lending facility at 2.40%, and deposit facility at 2.00%. This reflects an ongoing commitment to 2% inflation stability amid heightened uncertainties from Middle East tensions and US trade policies under President Trump. Market probabilities indicate around 58% odds of no change, though some banks now price in potential hikes due to rising inflation risks.<\/li>\n\n\n\n<li>Price dynamics show increasing upside pressures, with headline HICP inflation likely around 2.0-2.2% in early 2026, driven by energy costs from Middle East conflicts offsetting euro strength. Core inflation remains sticky but moderating slowly, with projections revised upward to 2.6% for 2026 overall amid hawkish signals from ECB leadership.<\/li>\n\n\n\n<li>Updated Eurosystem staff projections for April 2026 may forecast headline inflation at 2.1-2.2% in 2026, 1.9% in 2027, and 2.0% in 2028, with upside risks from energy and trade dominating balanced prior views. A stronger euro provides some counterbalance, but recent data revisions highlight persistent pressures.<\/li>\n\n\n\n<li>Euro area GDP growth holds steady, with Q2 2026 surveys suggesting 0.2-0.3% qoq growth, in line with 1.1-1.3% annual forecasts through 2027. Defence spending, infrastructure, and low unemployment support resilience against trade headwinds and softer external demand.<\/li>\n\n\n\n<li>The labour market remains tight, with unemployment steady near 6.4%, bolstered by wage growth and participation gains. Supportive credit conditions continue aiding investment and consumption despite global risks.<\/li>\n\n\n\n<li>Business sentiment is cautious amid US tariffs, geopolitical flare-ups, and supply chain easing; a somewhat weaker euro boosts exports, while fiscal measures aid domestic activity.<\/li>\n\n\n\n<li>The Governing Council maintains its data-dependent, meeting-by-meeting stance, scrutinizing inflation, transmission, and external shocks without pre-committing to rate paths.<\/li>\n\n\n\n<li>Balance sheet normalization advances smoothly, with APP\/PEPP wind-downs complete and no liquidity issues; banks show ample reserves and stable funding access.<\/li>\n<\/ul>\n\n\n\n<p>\u200bThe next meeting is on 29 April 2026<\/p>\n\n\n\n<p><strong>Next 24 Hours Bias<\/strong><br \/>Medium Bearish<\/p>\n\n\n\n<p><strong>The Swiss Franc (CHF)<\/strong><strong><br \/><\/strong><\/p>\n\n\n\n<p><strong>Key news events today<\/strong><\/p>\n\n\n\n<p>No major news event<\/p>\n\n\n\n<p><strong>What can we expect from CHF today?<\/strong><strong><br \/><\/strong><br \/>The Swiss franc is trading in a tight range, with USD\/CHF hovering near 0.79 after a slight pullback from multi\u2011year lows last week, while the euro remains near record lows versus CHF above 0.92. The franc continues to draw underlying support from its safe\u2011haven appeal, subdued inflation, and the SNB\u2019s readiness to intervene if appreciation becomes too disruptive, with analysts expecting the pair to gradually ease toward around 0.78 in the near term and 0.76 over the next year.<br \/><br \/><em>Central Bank Notes:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At its monetary policy assessment on 19 March 2026, the Swiss National Bank (SNB) is widely expected to leave the policy rate unchanged at 0%, continuing the extended pause since September 2025, as the Governing Board considers current settings adequate to keep inflation near the target without resorting to negative rates.<\/li>\n\n\n\n<li>Inflation data since December indicate persistent weakness, with headline CPI hovering around 0% year-on-year through early 2026 and core measures subdued at roughly 0.4%, underscoring limited price pressures and lingering, though contained, deflation risks.<\/li>\n\n\n\n<li>The SNB\u2019s updated conditional inflation forecast shows minimal change from December, with averages of about 0.2% in 2025 (now complete), 0.3% in 2026, and 0.6% in 2027 under a steady 0% policy rate. However, recent flat CPI readings may slightly lower near-term expectations, preserving scope for further easing if needed.<\/li>\n\n\n\n<li>Global conditions remain challenging, marked by U.S. tariff escalations under President Trump, subdued external demand, and uncertainties in major export markets such as Europe and the U.S., prompting the SNB to exercise caution despite resilient Swiss domestic activity.<\/li>\n\n\n\n<li>Sentiment in manufacturing and export sectors stays soft amid franc appreciation and weaker foreign orders, squeezing margins. Yet, overall GDP growth is expected to be around 1.5% in 2026, with unemployment edging up modestly from historic lows.<\/li>\n\n\n\n<li>The SNB reaffirms its readiness to intervene via rate cuts or FX operations should deflationary pressures intensify, while emphasizing clear communication through detailed meeting minutes and coordination with global partners on currency matters.<\/li>\n<\/ul>\n\n\n\n<p><br \/>The next meeting is on 18 June 2026.<\/p>\n\n\n\n<p><strong>Next 24 Hours Bias<\/strong><br \/>Weak Bearish<\/p>\n\n\n\n<p><strong>The Pound (GBP)<\/strong><strong><br \/><\/strong><strong><br \/><\/strong><strong>Key news events today<\/strong><\/p>\n\n\n\n<p>No major news event<\/p>\n\n\n\n<p><strong>What can we expect from GBP today?<\/strong><strong><br \/><\/strong><strong><br \/><\/strong>The British pound remains range-bound against the US dollar near 1.35, with traders adopting a cautious stance ahead of the Federal Reserve&#8217;s interest rate decision expected to hold steady at 3.50-3.75% later today, followed by the BoE&#8217;s announcement tomorrow at 3.75%\u2014a pivotal &#8220;triple central bank week&#8221; also involving the ECB that could trigger 1-2 cent swings in GBP\/USD.<\/p>\n\n\n\n<p><br \/><em>Central Bank Notes:<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Bank of England\u2019s Monetary Policy Committee (MPC) met on 19 March 2026, maintaining the Bank Rate at 3.75 per cent in a unanimous decision, following the prior narrow 5\u20134 vote to hold at the 5 February 2026 meeting. This pause reflects a sharp reversal from earlier market expectations of a 25-basis-point cut, driven by a Middle East conflict sparking global energy and commodity price surges. The March meeting did not include a Monetary Policy Report, with the next one due in April.<\/li>\n\n\n\n<li>Quantitative tightening (QT) proceeds unchanged at the 2025 pace of gilt holdings reductions, maintaining gradual balance-sheet normalization attuned to liquidity conditions and supportive of a restrictive stance amid new shocks.<\/li>\n\n\n\n<li>Headline CPI inflation faces near-term upside from the energy shock, reversing prior disinflation trends in domestic prices and wages; pre-shock services inflation had eased but now contends with higher utility and input costs, keeping pressures above the 2 per cent target. MPC projections will update in April, but analysts see inflation at 3-4 per cent by the end of 2026.<\/li>\n\n\n\n<li>UK growth softens further into Q2 2026, with unemployment risks rising amid potential confidence drops, higher precautionary saving, and widening output gaps; regular pay growth had cooled pre-shock but now faces business cost pass-through.<\/li>\n\n\n\n<li>Global headwinds intensify via Middle East conflict, driving volatile energy\/commodity prices and sterling\/gilt swings; MPC deems direct shocks manageable if demand weakens sufficiently to limit second-round effects.<\/li>\n\n\n\n<li>Inflation risks now tilt upwards from energy persistence and potential wage\/cost embedding, offset by downside from demand slack and job losses; prior balance has shifted amid uncertainty on shock duration.<\/li>\n\n\n\n<li>The MPC adopts a wait-and-see posture post-shock, with policy deemed somewhat restrictive pre-event; all members are ready to act data-dependently for 2 per cent sustainability, eyeing April for fuller impact analysis and possible easing if disinflation resumes. Governor Bailey&#8217;s guidance stresses close monitoring without firm-cut commitments.<\/li>\n\n\n\n<li>The next meeting is on 30 April 2026.<br \/><br \/><strong>Next 24 Hours Bias<\/strong><strong><br \/><\/strong>Medium Bearish<\/li>\n<\/ul>\n\n\n\n<p><strong><br \/><\/strong><strong><br \/><\/strong><strong>The Canadian Dollar (CAD)<\/strong><strong><br \/><\/strong><strong><br \/><\/strong><strong>Key news events today<\/strong><strong><br \/><\/strong><strong><br \/><\/strong>BOC Monetary Policy Report (1:45 pm GMT)<\/p>\n\n\n\n<p>BOC Rate Statement (1:45 pm GMT)<\/p>\n\n\n\n<p>Overnight Rate (1:45 pm GMT)<\/p>\n\n\n\n<p>BOC Press Conference (2:30 pm GMT)<\/p>\n\n\n\n<p><strong>What can we expect from CAD today?<\/strong><\/p>\n\n\n\n<p>The Canadian dollar holds near recent highs around 1.37 USD amid high oil prices from Middle East tensions and a hawkish BoC outlook, though it dipped slightly on April 28 to USD\/CAD 1.3684 (+0.42%) as inflation hit 2.4% without prompting rate hike expectations the BoC is set to maintain 2.25% today, balancing energy shocks with softening core inflation and global USD strength, per forecasts eyeing further loonie gains to 1.35 USD in a year.<br \/>\u200b<br \/>Central Bank Notes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Governing Council held the overnight rate target steady at 2.25% at its 25 March 2026 meeting, aligning with consensus forecasts and extending the pause in policy adjustments amid balanced risks. The Bank emphasized persistent global uncertainties from Middle East conflicts and U.S. trade policies under President Trump, but affirmed the current stance supports ongoing disinflation without immediate shifts despite elevated energy price volatility.<\/li>\n\n\n\n<li>U.S. tariff threats and regional geopolitical tensions continue weighing on business sentiment, though Canadian manufacturing PMI has edged higher into expansion territory, with export orders firming on energy demand. Goods exports, led by crude oil, sustained momentum into February, offsetting cautious capex as firms prioritize resilience over aggressive growth.<\/li>\n\n\n\n<li>Economic growth carried into Q1 2026 at an annualized pace of around 2.2%, building on Q4 2025&#8217;s solid performance, fueled by resource exports, government outlays, and manufacturing rebound. February preliminary data points to steady expansion, though winter weather and supply chain frictions modestly curbed potential upside.<\/li>\n\n\n\n<li>Services sector PMI climbed further above 50, with broad gains in tech, hospitality, and business services; consumer-facing areas showed tentative improvement as real wages rose, though high service costs still restrained discretionary outlays. The Bank sees this diffusion as evidence of rebalancing toward sustainable activity.<\/li>\n\n\n\n<li>\u200bNational housing resales ticked up in January-February alongside modest price gains, buoyed by stable rates and improved affordability in select regions, while inventory buildup in urban centers prevents excessive tightening. Officials anticipate continued moderation, aided by prudent mortgage rules amid steady household formation.<\/li>\n\n\n\n<li>Headline CPI eased to about 2.1% year-over-year in February 2026 estimates, staying within the control band, as core gauges like CPI-trim and median dipped to near 2.7% on softer food and durable goods pressures\u2014despite sticky shelter costs. This reinforces the Bank&#8217;s view of inflation sustainably approaching the target.<\/li>\n\n\n\n<li>Policymakers reiterated that 2.25% remains well-calibrated to anchor 2% inflation and foster adjustment, with no cuts signaled barring downside surprises in growth or prices. Attention now turns to Q2 durability, core inflation persistence, and evolving trade\/geopolitical clarity.<\/li>\n\n\n\n<li>The next meeting is on 29 April 2026.<\/li>\n<\/ul>\n\n\n\n<p><strong>Next 24 Hours Bias<\/strong><br \/>Medium Bearish<\/p>\n\n\n\n<p><strong>Oil<\/strong><strong><br \/><\/strong><strong><em><br \/><\/em><\/strong><strong>Key news events today<\/strong><strong><br \/><\/strong><strong><br \/><\/strong>EIA Crude Oil Inventories (8:30 pm GMT)<br \/><strong><br \/><\/strong><strong>What can we expect from Oil today?<\/strong><\/p>\n\n\n\n<p>WTI crude closed at $99.85 on April 28, up 3.61% for the seventh straight session, hitting highs not seen since early April despite the UAE move. Brent rose to $111.78 (June futures), up 0.47%, with analysts citing Hormuz constraints outweighing any potential output hikes. US inventories fell for a second week, with crude down 1.79 million barrels.<\/p>\n\n\n\n<p><br \/><strong>Next 24 Hours Bias<\/strong><strong><br \/><\/strong>Medium Bullish<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IC Markets &#8211; Europe Fundamental Forecast | 29 April 2026 What [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":79417,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215,339],"tags":[],"class_list":["post-80026","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis","category-recent-posts"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/80026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/comments?post=80026"}],"version-history":[{"count":2,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/80026\/revisions"}],"predecessor-version":[{"id":80051,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/posts\/80026\/revisions\/80051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media\/79417"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/media?parent=80026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/categories?post=80026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com.au\/blog\/wp-json\/wp\/v2\/tags?post=80026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}