A busy economic calendar, central bank policy decisions and chatter, and news updates on the war in Ukraine will be the key drivers in the week ahead.
Chinese President Xi Jinping called for an “all-out” effort this week to boost the world’s second-largest economy through infrastructure investments, signaling growing internal concerns about China’s growth prospects.
This month's dive in China's currency has revived memories of past routs but market participants say increased foreign holdings of yuan assets mean authorities are much less likely to curb the selling than they were in previous years. The yuan hit an 18-month low on Friday and has slid more than 4.5% on the dollar in April, setting it on course for its worst month since currency market reforms of 1994. However, unlike 2018-19, when the yuan fell through the U.S.-China trade war, or 2015-16, when a domestic stampede to offshore assets accelerated a decline, investors and analysts say that foreign selling is now the dominant driver, presenting new downside risks.