A busy central bank week will reveal market trends
|Important news for the week
- Wed, 29th, 14:45 CET CA BoC interest rate decision.
- Wed, 29th, 19:00 CET US FED interest rate decision.
- Thu, 30th JP BoJ interest rate decision.
- Thu, 30th, 14:15 CET EU ECB interest rate decision.
- Fri, 31st, tentative US Core PCE price index.
Rate decisions
This week will offer a lot of volatility moving forward. The various interest rate decisions might move markets. The recent slide in the CAD might continue. A rate cut of the BoC, which is being expected, might cause the EURCAD and USDCAD to push higher again. Furthermore Jerome Powell is also expected to reduce rates in the US. The Dollar, however, might not weaken much as such move has been long expected. The negative sentiment of the Dollar has recently started to fade and the DXY is rising again. While no changes are expected from the BoJ as well as the ECB the latter event might be interesting. Words from ECB’s Lagarde might move markets depending on her future outlook of the rate development. A potential hint to falling rates could then set the Euro unter pressure again.
Market talk
Stock markets seem to continue their upside after Friday’s weaker than expected consumer price index is expected to support Jerome Powell in cutting interest rates during this week’s meeting. Falling prices wouldn’t cause a rate cut to hence boost inflation again but instead help supporting the economy and the shrinking workforce. Precious metals look like they will fall further. After the record gais in recent weeks falling prices might now continue to push markets lower. The month- end might be interesting to watch, as this might lead to a bearish candlestick pattern, which could increase the pressure. Also oil prices seem to move lower again. After the recent push due to the added sanction over Russia from the US the upside seems limited now.
Tendencies in the markets
- Equities positive, USD stronger, BTC positive, ETH positive, oil weaker, Silver weaker, Gold weaker.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.