Three markets to watch next week (15.03.2024)

The next week on the markets is all about central banks. Traders will be offered rate decision from Fed, Bank of Japan, Bank of England and Reserve Bank of Australia. On top of that, release of flash PMI indices for March will provide an update on conditions within European economies. Be sure to watch USDJPY, GBPAUD and DE40 in the week ahead!

USDJPY

Rate decisions from Bank of Japan and Fed are unquestionably the most important events of the next week. Decision from BoJ, scheduled for Tuesday, is especially drawing attention as Japanese central bankers may decide to deliver a hike and exit negative interest rates. Meanwhile, Fed is expected to keep rates unchanged when it announces a decision on Wednesday, 6:00 pm GMT. However, traders will be offered a new set of quarterly economic projections, which may help set more clear expectations for the timing of the first rate cut, which is now seen either in June or July.

GBPAUD

GBPAUD may see some moves next week as Reserve Bank of Australia is scheduled to announce a rate decision on Tuesday, 3:30 am GMT, while Bank of England will announce its decision on Thursday, 12:00 pm GMT. Both banks are expected to keep rates unchanged. However, money markets see an over-30% chance of RBA cutting rates next week. BoE dropped its hiking bias in February, but is not expected to cut rates before June 2024 meeting.

DE40

Flash PMI indices for March from Europe will be released upcoming Thursday. As usual, the attention will be paid mostly to data from France and Germany, which will be released at 8:15 am GMT and 8:30 am GMT, respectively. Data for February showed improvement in French services and manufacturing sectors, but both indices remained in contraction territory. Meanwhile, situation in German manufacturing sector deteriorated. Data for March is expected to show small improvement in manufacturing sector in both countries, as well as no major changes to services indices.