The upcoming week will be full of macroeconomic publications and events! On the top of that other crucial central banks like Fed, BoE, SNB and BoJ will publish their decisions on monetary policy. We could notice a picked up volatility on the market, so you can expect to see even more in the coming days due to the number of key market events. Many markets will experience sizable movements this week, but in our opinion, markets such as GOLD, GBPUSD and US500 are worth a look.
Gold
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Open account Try demo Download mobile app Download mobile appNext week will be extremely interesting for investors due to the interest rates decisions of key central banks. For the gold market, the Fed and BoJ will be crucial. The Fed is expected to hold interest rates on Wednesday, which in theory should be supportive for gold. The ECB raised interest rates, but signaled the end of hiking cycle. Moreover, the BoJ will also make a decision on Friday. The market does not expect any change, but Ueda indicated in a recent interview that an exit from negative interest rates may be warranted by the end of this year. A hawkish BoJ could mean declines in the USDJPY. A weaker dollar could also mean a recovery in gold.
US500
The US500 index is at an interesting technical structure that could simultaneously indicate a medium-term uptrend or downtrend. Wednesday's session and the Fed's decision will bring us the publication of the latest dot-plot chart, which will indicate the Fed's attitude towards current economic conditions. The bankers' revised projections for the path of monetary tightening could prove to be a key factor for the future performance of US stock indices in the medium term.
GBPUSD
The Fed is not the only bank to make a decision on interest rates. On Thursday, we await the BoE decision, which seems to be a bigger puzzle than the FOMC decision. The situation in the UK is tough, with bankers there facing huge wage pressures, which is an important pro-inflationary factor. On the other hand, GDP data points to a further deceleration of the economy. Markets are pricing in a near 69% probability that the BoE will raise rates by 25 basis points, but economists' votes are somewhat divided on this point. One thing is certain, the decision itself could significantly increase volatility on the GBPUSD pair on Thursday.
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