A busy central bank week awaits

Frank Walbaum FX Strategies.Asia

Important news for the week

Tue, 18th, 13:30 CET CA Consumer prices index.
Wed, 19th, JP BoJ interest rate decision.
Wed,19th, 19:00 CET US FED interest rate decision.
Thu, 20th, 09:30 CET CH SNB interest rate decision.
Thu, 20th, 13:00 CET UK BoE interest rate decision.

Important central bank week

In this week, several important interest rate decisions are due. While only the SNB is expected to cut rates during this meeting, the BoJ and BoE are not expected to cut rates. The focus should be on the FED, which is also not expected to cut rates this week. Market participants currently expect, that Jerome Powell will only reduce rates once or maybe twice this year. Yet, recession issues cause an impact to this and maybe have the Central bank to even act sooner. Weakness of the Dollar should then be expected.

Market talk

Stock markets resumed the week with some upside. While the S&P 500 stopped falling on top of the 50 -moving average, based on the weekly chart, also the Nasdaq started some slight upside. Markets might only offer limited positive momentum in light of the current turbulences in articular with newly added US politics. Furthermore, Hedge Funds try to get access to Russian markets. Since sanctions of the West have been imposed several assets have lost momentum. A potential lift on bans might also help bonds on Russian companies, which had lost sharp momentum back then.

Tendencies in the markets

Equities recovering, USD weak, cryptos sideways, Oil positive, Silver sideways, Gold positive, JPY weak.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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